KKR Teams With Walgreens To Acquire Pharmerica In $1.4B Deal

KKR has agreed to buy PharMerica, a manager of hospital pharmacies, in a take-private deal valued at about $1.4 billion, including debt. The company’s shareholders will receive $29.25 per share in cash, a 17% premium to PharMerica’s closing stock price Tuesday. Walgreens Boots Alliance will be a minority investor in the deal, which is expected to close in early 2018.

Established in 2007, PharMerica operates more than 100 pharmacies across the US at nursing facilities, hospitals, oncology centers and other treatment centers. The company also announced its 2Q earnings Wednesday, highlighted by a 14% YoY increase in revenue, up to $592 million.

The US healthcare sector has been home to 408 completed deals so far in 2017, per the PitchBook Platform, on pace for the first YoY decline in at least seven years. We took a closer look at the trend in a Q&A with Angela Humphreys of Bass, Berry & Sims.

Seth Klarman: Investors Can No Longer Rely On Mean Reversion

Volatility"For most of the last century," Seth Klarman noted in his second-quarter letter to Baupost's investors, "a reasonable approach to assessing a company's future prospects was to expect mean reversion." He went on to explain that fluctuations in business performance were largely cyclical, and investors could profit from this buying low and selling high. Also Read More

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