Catamaran To acquire Salveo Specialty Pharmacy For $260M In Cash
Catamaran Corp. (NASDAQ: CTRX) (TSX: CCT), a leading provider of technology and pharmacy benefit management (PBM) services, announced today that it has entered into a definitive agreement to acquire Salveo Specialty Pharmacy, an independent specialty pharmacy company headquartered in St. Petersburg, Florida with business operations in New York (Echo Salveo Specialty Pharmacy) and California (Mission Road Pharmacy). Salveo manages approximately $400 million in annual drug spend. The purchase price of $260 million in cash (subject to certain customary post-closing adjustments) represents a purchase price multiple of approximately 13x Salveo's trailing-twelve-month EBITDA and is expected to be funded through cash on the balance sheet.
"We are thrilled to welcome Salveo and its employees to the Catamaran team," said Mark Thierer, Chairman and CEO of Catamaran. "Salveo's successful commercial strategy, geographic footprint and diverse therapy mix are highly complementary to our BriovaRx specialty strategy. This transaction affirms our commitment to investing in our specialty capabilities and the combination of BriovaRx and Salveo strongly positions Catamaran as one of the largest specialty pharmacies with a truly unique service offering."
"Salveo has emerged as a strong specialty provider by focusing on the individual patients we serve. Together, we view Salveo and BriovaRx as a hand in glove fit, given our complementary values and strong commercial momentum in both organizations", said Jeff Freedman, CEO of Salveo.
This acquisition is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to be completed during the fourth quarter of 2014.
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