Catamaran to Acquire Salveo Specialty Pharmacy
October 08, 2014
Schaumburg, Illinois, October 8, 2014 – 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.
Catamaran, the industry’s fastest-growing pharmacy benefits manager, helps organizations and the communities they serve take control of prescription drug costs. Managing more than 350 million prescriptions each year on behalf of over 32 million members, our flexible, holistic solutions improve patient care and empower individuals to take charge of their health. Processing one in every five prescription claims in the U.S., Catamaran’s skill and scale deliver compelling financial results and sustainable improvement in the overall health of members. Catamaran is headquartered in Schaumburg, Ill., with multiple locations in the U.S. and Canada. For more information, please visit CatamaranRx.com, and for industry news and information, follow Catamaran on Twitter, @CatamaranCorp.
About Salveo Specialty Pharmacy, Inc.
Salveo Specialty Pharmacy, Inc., a private company headquartered in Saint Petersburg, Florida, was formed to create a leading specialty pharmacy organization serving patients and customers across the country. Salveo acquires, integrates and grows select specialty pharmacy organizations that share its philosophy of providing superior customer service and clinical patient care to the chronically ill population.