HealthExtras Announces Agreement to Acquire Leading Provider of PBM Services to the Hospice Industry
08 Avril 2008 - 3:02PM
Business Wire
HealthExtras, Inc. (NASDAQ:HLEX), a pharmacy benefit management
(�PBM�) company today announced that it has entered into a
definitive agreement to acquire HospiScript Services, LLC
(�HospiScript�) of Montgomery, Alabama. HospiScript, a New Capital
Partners� portfolio company, is the largest independently-owned
provider of pharmacy medication therapy management services to the
hospice industry with a nationwide presence of clients in 46
states. This acquisition will provide HealthExtras a market-leading
position in the growing hospice sector. �HospiScript�s exceptional
reputation, commitment to high quality of service and strong
presence in the hospice sector should broaden our growth prospects
within an attractive market segment,� stated David T. Blair, Chief
Executive Officer of HealthExtras. �This transaction meets our goal
of complementing our strong organic growth through selective
acquisitions and strategic investments. The hospice industry has
experienced growth in recent years and due to industry dynamics and
favorable demographic trends there remain significant PBM expansion
opportunities,� continued Blair. �We are pleased to be aligning
ourselves with a company that employs the same high-touch client
service model that has brought us success. We also look forward to
having access to the resources of a larger company as we continue
to expand our PBM hospice business. This partnership should enable
us to enhance our clinical product offerings to better serve our
clients,� said Shannon G. Speir, President and CEO of HospiScript.
HospiScript is led by an experienced, clinically-focused management
team that has managed rapid growth in the business while delivering
consistently strong operating margins. �HealthExtras is not only
acquiring a great company but it is also gaining an exceptional
management team,� stated Jim Little, Chairman of HospiScript and
Managing Partner of New Capital Partners. New Capital Partners is a
private equity firm based in Birmingham, Alabama. Under the terms
of the agreement, HealthExtras will pay a purchase price of $100
million in cash at closing. The transaction should be modestly
accretive in the second half of 2008. Once fully integrated,
HospiScript should contribute $0.12 to $0.15 per share on an
annualized basis. Additional information about the timing and
extent of HospiScript�s contributions to revenues and earnings will
be provided in conjunction with HealthExtras� next quarterly
conference call. The transaction is subject to customary closing
conditions, including regulatory approval. The company expects the
transaction will close in the second quarter. Kirkland & Ellis
LLP served as legal advisor to HealthExtras. Houlihan Lokey served
as financial advisor to HospiScript and Maynard, Cooper & Gale,
P.C. served as legal advisor to the company. About HealthExtras
(www.healthextras.com): HealthExtras, Inc. is a full-service
pharmacy benefit management company. Its clients include
self-insured employers, including state and local governments,
third-party administrators, managed care organizations, unions and
individuals. The Company's integrated pharmacy benefit management
services marketed under the name Catalyst Rx include: claims
processing, benefit design consultation, drug utilization review,
formulary management, drug data analysis services and mail order
services. Additionally, the Company operates a national retail
pharmacy network with over 60,000 participating pharmacies. About
HospiScript Services, LLC (www.hospiscript.com) HospiScript
Services, LLC, founded in 1995, is a Montgomery, Alabama-based
Prescription Benefits Manager focusing exclusively on the needs of
the hospice industry. The company offers a complete support system
tailored to help hospices better focus on the ultimate goal of
improving end-of-life patient care. HospiScript's program features
and benefits include: reduced pharmaceutical and administrative
expenses, custom dispensing parameters, access to hospice-trained
pharmacist consultation, online reporting for pharmaceutical
expenses and utilization patterns, and powerful educational
resources for nurses, pharmacists and hospice administrators. This
press release may contain forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements involve a number of risks and
uncertainties. Factors that we have identified that might
materially affect our results are discussed in our Annual Report on
Form 10-K for the year ended December 31, 2007 under "Item 1.A Risk
Factors." Readers are urged to carefully review and consider the
various disclosures made in our Annual Report on Form 10-K and our
other filings with the Securities and Exchange Commission that
attempt to advise interested parties of the risks and uncertainties
that may affect our business.
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