Altamont Capital Partners has formed a new portfolio company, ModernHEALTH Specialty Pharmacy, to acquire the specialty pharmacy operations of Modern HEALTHcare and the specialty pharmacy operations of A-Med Healthcare.
“Over the years we have built a substantial specialty pharmacy business at Modern HEALTHcare including BioFusion, a leader in the specialty infusion market. Continuing to build these businesses as an independent platform with a strong financial partner will allow us to better serve our patients and capitalize on the substantial growth opportunities we see in the marketplace. Altamont was the best partner for us given their deep industry knowledge and strong capability for handling complex transactions,” said Richard Katz, CEO of ModernHEALTH Specialty Pharmacy.
ModernHEALTH Specialty Pharmacy will serve the needs of over six thousand patients in fifteen states with a focus on specialty infusion, particularly IVIG therapy, as well as specialty pharmaceutical therapies with high service needs such as HIV, Cystic Fibrosis, Transplant, Hepatitis C and Multiple Sclerosis among others. ModernHEALTH Specialty will be based in Monrovia, CA (www.modernhealthinc.com).
A-Med is a provider of medical supplies and specialty pharmaceuticals to patients throughout the United States. A-Med’s specialty pharmacy operation principally services Medicare, Medicaid / Medi-Cal and managed care patients across several disease states including, cystic fibrosis, HIV / AIDS and transplant patients. The company was founded in 1982 and is headquartered in Huntington Beach, CA (www.a-med.com).
“Rick and the team at Modern and BioFusion have done an exceptional job working with physicians, payors and manufacturers to generate great outcomes for patients. This has led to strong growth and an outstanding reputation in the market. This type of high quality care is also clearly reflected at A-Med, making the two businesses a natural combination. We are excited to continue to build this company over the coming years both organically and through additional add-on acquisitions,” said Casey Lynch, Managing Director of Altamont. William Blair & Company advised and represented Modern HEALTHcare in this transaction.
Intrepid Investment Bankers acted as the exclusive M&A advisor to A-Med in connection with this transaction. The Intrepid team included Ed Bagdasarian, Gary Rabishaw, Jeremiah Mann, Shahriar Attaie and Chris Neils. Intrepid is a mergers and acquisitions and corporate finance advisory firm focused on the middle-market. Intrepid was founded in 2010 by the former principals of Barrington Associates, a firm that grew to become a national middle market M&A advisor before its acquisition by Wells Fargo in 2006. The firm is based in Los Angeles, CA (www.intrepidib.com).
“We were pleased to have the opportunity to work closely with the owners and management team of A-Med through the sale process. After starting the specialty pharmacy in 2003 and growing it considerably, the owners of A-Med decided to pursue its divestiture so that A-Med could focus on building its core medical supplies business,” said Ed Bagdasarian, Managing Director of Intrepid. “The transaction represented the culmination of a complex three-party combination that best achieves the objectives of A-Med’s owners and allows management to focus on driving the growth of its medical supplies unit. This transaction continues our team’s long track record of completing successful transactions in the healthcare sector.”
Altamont Capital Partners invests in middle market businesses with specific interest in the financial services, consumer/retail, industrials, healthcare and business services sectors. Altamont was formed in 2010 by Jesse Rogers, Randall Eason and Keoni Schwartz who previously worked together at Golden Gate Capital and Bain & Company. The firm closed its first fund with $500 million of commitments in 2010. Altamont Capital Partners is based in San Francisco, CA (www.altamontcapital.com).