Vesey Street Capital Partners has recapitalized Safecor Health, a provider of unit dose drug packaging services for hospitals, long term care providers, pharmaceutical manufacturers, and retail and digital health companies. No financial terms were disclosed. Kirkland & Ellis served as legal counsel to VSCP on the deal while Chabria Advisory LLC served as financial advisor to Safecor while Barack Ferrazzano Kirschbaum & Nagelberg LLP provided legal counsel.
NEW YORK, Aug. 25, 2021 /PRNewswire/ — Vesey Street Capital Partners, LLC (“VSCP”), a New York-based healthcare services private equity firm, announced that funds managed by VSCP have completed a recapitalization of Safecor Health (“Safecor” or the “Company”). The Company is the market leader of pharmaceutical unit dose packaging services for hospitals and health systems and provides unit dose packaging services to pharmaceutical manufacturers and digital pharmacy companies. Terms of the transaction were not disclosed.
“Vesey Street Capital Partners is both excited and honored to be partnering with Steve Fischbach, Ryan O’Dell, and the rest of the management team at Safecor Health to help support and enable its next phase of growth. Not only are we enthused about its existing and future internal growth plans, but we also view the Company’s footprint as an excellent vehicle to expand via add-on acquisitions,” said Adam Feinstein, Managing Partner of VSCP. Added Larry Marsh, General Partner of VSCP, “Having a long-standing relationship with the principals of the Company, we are big admirers of Safecor’s positioning and prospects, and believe that the Company’s best-in-class quality, excellent compliance track record, deep-seeded customer relationships, and experienced and well-respected leadership will continue to allow for meaningful growth in the future.”
Steve Fischbach, the Co-Founder and CEO of Safecor, said, “The partnership with Vesey Street Capital Partners is exciting, not just for Safecor Health’s growth but for the impact we can collectively have on our customers. Our mission, driven by our dedicated employees, has been to build a service platform that meaningfully improves the cost and efficiency of healthcare providers. VSCP’s deep market knowledge and their dedication to putting capital to work will greatly accelerate the expansion of our platform and the positive impact we can have on our customers.” Ryan O’Dell, the Company’s other Co-Founder and President, added, “I am thrilled about this new chapter for Safecor Health. Our ability to improve and expand our services, build critical capacity, and further the use of technology to provide cost savings to hospital, pharmaceutical and retail customers will allow us to have an even greater impact in the marketplace. Our customers are challenged every day with reimbursement changes and limited capital and resources, all while trying to stay focused on patient care. Our new partnership with VSCP will allow us to invest in enhancing our services and building out new capabilities that will directly address those issues throughout the continuum of patient care.”
VSCP and affiliates contributed the equity for the transaction. JP Morgan Chase Bank, N.A. provided debt financing to support the transaction, and Kirkland & Ellis served as legal counsel to VSCP. Chabria Advisory LLC served as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to Safecor.
ABOUT SAFECOR HEALTH
Founded in 2008, Safecor Health is the national leader committed to providing unit dose drug packaging services for hospitals, long term care providers, pharmaceutical manufacturers, and retail and digital health companies. The Company also markets a rapidly growing line of commercial unit dose products for use in institutions. Today, Safecor Health services over 1,000 hospitals across the country and repackages for more than 75% of the U. S. News & World Report “Honor Roll” Hospitals. The Company has a track record of quality and for delivering significant cost savings to hospital and health systems. Operating out of two state-of-the-art packaging centers, the Safecor Health team has deep expertise in pharmaceutical packaging, pharmaceutical distribution and supply chain, and healthcare information technology. For more information, please visit www.safecorhealth.com.