NexPhase’s Comprehensive Pharmacy Services preps for sale

  • New York firm’s CPS investment dates to 2012
  • NexPhase members spun out of Moelis Capital in ’16
  • Investments: Synergy HomeCare, Clearway Pain

NexPhase Capital is gearing up to launch a sales process for Comprehensive Pharmacy Services, which helps hospital pharmacies drive down drug costs, Buyouts has learned.

Harris Williams has been engaged to advise the Memphis company, people with knowledge of the process said. A process is expected to kick off post-Labor Day and encompass strategics and sponsors, one person said.

CPS produces Ebitda around $40 million, this person added.

Founded in 1971, CPS provides pharmacy services, IT and data informatics to more than 700 hospitals and health systems. The company works with pharmacists on issues relating to hyper-inflated drug prices, medication reconciliation, centralized distribution, regulatory and compliance, and 340B programs, among other things.

Calvin “CJ” Johnson is CEO and Don Nickleson is chairman.

CPS ought to benefit from scarcity value as the market in which it operates consists largely of small providers.

CPS represents the largest provider of outsourced pharmacy services to hospitals in the U.S., followed by a unit of Cardinal Health, one of the people said. Cardinal provides inpatient pharmacy-services to approximately 75 hospitals.

The area also has tremendous runway for growth, as only around 15 percent of hospital pharmacies in the U.S. outsource these services today, this person added.

For NexPhase, CPS is among a portfolio of legacy assets inherited from Moelis Capital Partners. NexPhase members in 2016 spun out of Moelis Capital, which initially invested in CPS in November 2012.

NexPhase, New York, targets entrepreneur-owned lower-middle-market companies. In its recent healthcare activity, NexPhase in April purchased Synergy HomeCare, a deal valued just south of $80 million, Buyouts reported.

NexPhase in March launched a new interventional pain-management company, Clearway Pain Solutions Institute, in connection with its acquisition of Gulf Coast Pain Institute.

NexPhase and CPS declined to comment, while Harris Williams couldn’t immediately be reached.

Action Item: Check out NexPhase’s Form ADV here:

Correction: This story was updated to reflect that CPS is the largest provider of outsourced pharmacy services to hospitals. A previous version incorrectly identified a division of Cardinal as the largest provider in the U.S.