Lincare Holdings Inc., the nation’s largest home health provider of oxygen and respiratory services, is selling its specialty pharmacy businesses, Acro Pharmaceutical Services, LLC and Community Pharmacy Services, LLC. Acro operates in 50 states, while Community Pharmacy Services serves a 340B drug program in the Philadelphia area. These businesses generated revenue of approximately $206 million in the fiscal year ended December 31, 2015.
The acquirer is Premier Inc. (NASDAQ: PINC), a healthcare improvement company, agreed to pay an aggregate of $75 million in cash. The businesses generated revenue of approximately $206 million in the fiscal year ended December 31, 2015, for a multiple of 0.36x revenue.
This deal gives Premier access to limited distribution drugs used to treat oncology, multiple sclerosis and respiratory diseases, and to serve the growing needs of Medicaid patients in Arkansas and Mississippi.
Acro and Community Pharmacy Services will be integrated into Premier’s existing specialty pharmacy business as part of Premier’s supply chain services segment.The transaction is expected to be accretive to earnings in 2017, and will close before September 30, 2016.