CIT Healthcare Finance was the Sole Lead Arranger and Administrative Agent on a $26.5 million senior secured credit facility to support the recapitalization of PharmaLogic and the add-acquisition of Clinical Pharmacy Services by Webster Capital.
PharmaLogic – acquired by Webster Capital and MedEquity Capital in March 2015 – is a nuclear pharmacy company with 12 locations in the Northeast and Western United States. Nuclear pharmacies provide compounding and dispensing of radioactive materials for use in nuclear medicine procedures. The company was founded in 1993 and is headquartered in Boca Raton (www.pharmalogic.info).
Clinical Pharmacy Services (CPS) is a nuclear pharmacy that provides products and services to outpatient diagnostic imaging centers and hospitals with nuclear medicine imaging capabilities. CPS also provides mobile PET/CT imaging services. The company was founded in 1990 and is headquartered northeast of Knoxville in Gray, TN (www.clinicalpharmacyservices.com).
“Webster Capital has a strong reputation for successful healthcare investments and the combination of PharmaLogic and CPS is evidence of this track record. We are pleased to have arranged this financing and to put our healthcare knowledge and experience to work for these two companies,” said William Douglass, Group Head and Managing Director of CIT Healthcare Finance.
CIT Corporate Finance provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). The corporate finance group is part of CIT, a bank holding company with more than $65 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).
“The CIT Capital Markets team was diligent in their efforts to bring together this financing for Webster Capital,” said David Malm, Co-Managing Partner of Webster Capital.
Webster Capital invests in branded consumer, business- to-business, and healthcare services companies with revenues of $20 million to $100 million and EBITDAs from $2 million to $15 million. Transaction values typically range from $30 million to $100 million. The firm was founded in 2003 and is based in Waltham, MA (www.webstercapital.com).
Webster’s co-investment partner on this transaction was MedEquity Capital. The firm invests in healthcare businesses that have revenues of $3 million to $15 million and EBITDA of $0.5 million to $2.5 million. MedEquity is based west of Boston in Wellesley Hills, MA (www.medequity.com).
“We’re pleased to have secured this financing from CIT Healthcare Finance which allows us to expand our market footprint to 13 states with CPS complementing our service offering through the addition of mobile PET/CT imaging and PET isotope production capabilities,” said Steven Chilinski, President and Chief Executive Officer of PharmaLogic.
© 2015 PEPD • Private Equity’s Leading News Magazine • 9-15-15
