Premier, a Charlotte, N.C.-based healthcare improvement company, will exit the complex specialty pharmacy business.
The company announced May 6 it would sell its specialty pharmacy business to ProCare Pharmacy, a subsidiary of CVS Health, for $22.5 million. It may also receive up to $20 million for its inventory. The deal is expected to close by June 30.
Premier's specialty pharmacy, which includes Acro Pharmaceutical Services and Commcare Pharmacy, serves 66 health systems encompassing 367 hospitals.
"Although specialty pharmacy continues to be an important component in healthcare, today’s market dynamics are challenging and have resulted in new pressures across the industry,” said Michael Alkire, president of Premier. "Exiting the business better positions Premier to capitalize on our strengths and enhance our focus on core, growing business lines encompassing our supply chain, enterprise analytics and performance improvement capabilities."
Premier expects the deal to increase its consolidated adjusted EBITDA margin about 11 percent, to 45 percent in fiscal year 2019.
Premier expects to record an impairment charge of $87 million to $92 million related to goodwill, purchased intangibles and other assets. It expects to incur a charge of $11 million to $15 million related to severance, retention benefits and financial adviser fees.