PharMerica (PMC) to be acquired by KKR (KKR) for $29.25/share

PharMerica (PMC) to be acquired by KKR (KKR) for $29.25/share in cash. (2 Aug 2017)

    

 

Louisville, KY-based PharMerica Inc. has reached a definitive agreement to be acquired for $1.4 billion.

The institutional pharmacy provider is being bought by a new company controlled by KKR & Co. L.P., a New York City-based private-equity firm, with Deerfield, Ill.-based Walgreens Boots Alliance Inc. as a minority investor.

The all-cash deal includes the assumption of PharMerica's debt. When the transaction is complete — expected in early 2018 — PharMerica will become a private company.

PharMerica shareholders will receive $29.25 in cash per share of PharMerica common stock, the release states. The stock closed Tuesday at $25.05, so the acquisition prices is a 17 percent premium.

“With the support of KKR and a strategic partner in Walgreens Boots Alliance, PharMerica will have additional resources and expertise to advance and grow the business," PharMerica CEO Gregory Weishar said in the release.

Alex Gourlay, Walgreens Boots Alliance co-chief operating officer, said the merger represented an opportunity for his company to expand into a growing segment of health care.

The PharMerica board of directors unanimously approved the sale. But the deal still requires PharMerica shareholder approval and regulatory approvals.

PharMerica was founded in 2006 through the merger of the institutional pharmacy business of Louisville-based Kindred Healthcare and AmerisourceBergen Corp.

PharMerica (PMC) reported Q1 earnings on Fri 6 May 2016 (b/o)

** charts after earnings **

  

• 3 weeks later:

PharMerica beats by $0.02, beats on revs; reaffirms FY16 guidance:

• Reports Q1 (Mar) earnings of $0.45 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.43; revenues rose 2.5% year/year to $524.5 mln vs the $509.45 mln Capital IQ Consensus, adjusted EBITDA was $30.3 mln compared with $35.4 mln year ago.
• Prescriptions dispensed in Q1 were 8.6 mln as compared to 8.4 mln in the fourth quarter of 2015 and 8.2 mln in the third quarter of 2015. This quarter represents the second sequential quarterly increase in prescription volume.
• Co reaffirms guidance for FY16, sees EPS of $1.95-2.05 vs. $2.01 Capital IQ Consensus Estimate; sees FY16 revs of $2.125-2.150 bln vs. $2.13 bln Capital IQ Consensus Estimate, adjusted EBITDA of $130.3 mln to $135.3 mln. "We are confident diversified revenues will exceed $700 mln in 2017, and the diversification program will meaningfully contribute to the Company's overall EBITDA growth over the next several years."

This week's biggest % winners & losers: Dec 28 - 31, 15 (wk 53)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare:ATRA (26.41 +11.86%),COLL (27.5 +9.96%),ADAP (12.06 +9.64%),CARA (16.86 +9.34%), PMC (35 +8.36%)
• Industrials:TGI (39.75 +15.55%),CMRE (10.42 +8.77%)
• Consumer Discretionary:VDTH (8.88 +8.82%),DFRG (16.02 +8.68%)
• Information Technology:GLOB (37.51 +8.07%),CSRA (30 +7.07%)
• Energy:FELP (3.53 +21.72%),NSH (21.15 +12.32%),RICE (10.9 +10.55%),ECR (1.82 +8.33%),TEGP (15.97 +8.2%),SEP (47.7 +7.36%),GPP (16.25 +6.77%),TNP(7.92 +6.74%)
• Consumer Staples:BETR (11.52 +7.36%)

This week's top 20 % losers

• Healthcare:CMRX (8.95 -74.84%),FLML (12.21 -17.78%),ADXS (10.06 -16.17%),NVCR (22.36 -13.77%),RGLS (8.72 -13.32%),LOXO (28.45 -12.68%)
• Materials:TROX (3.91 -18.03%),GSM (10.75 -15.09%)
• Industrials:ABGB (1.28 -16.88%)
• Information Technology:DDD (8.69 -17.24%),SUNE (5.09 -14.02%),SSYS(23.48 -12.36%)
• Financials:CAF (19.91 -29.77%),CIA (7.43 -13%)
• Energy:LINE (1.29 -15.69%),VNR (2.98 -15.1%),PWE (0.84 -12.8%),DNR(2.02 -12.17%),SDRL (3.39 -11.49%)
• Consumer Staples:NHTC (33.53 -26.93%)

Great trade : PharMerica (PMC) +10% (12/15)