PharMerica to Be Taken Private by KKR-Backed Company in $1.4 Billion Deal

By Bowdeya Tweh

KKR & Co. and Walgreens Boots Alliance Inc. have reached a deal to take PharMerica Corp. private in a deal valued at $1.4 billion, the companies said Wednesday.

Shareholders of institutional pharmacy-services company PharMerica will receive $29.25 a share in cash, a 17% premium to Tuesday's closing price. Walgreens Boots Alliance will be a minority investor in a newly formed company that KKR will control.

Shares rose 15% to $28.75 in premarket trading.

The Louisville, Ky., company's decision to be acquired followed a review of strategic alternatives. The company's board has already approved the transaction.

"With the support of KKR and a strategic partner in Walgreens Boots Alliance, PharMerica will have additional resources and expertise to advance and grow the business," said Chief Executive Gregory Weishar in prepared remarks.

The deal still requires PharMerica shareholder approval, but the companies expect the acquisition to close by early 2018.

PharMerica on Wednesday also reported a second quarter adjusted per-share profit of 47 cents on $592 million in revenue, compared with a profit of 47 cents a share on $519.6 million in revenue a year ago. Analysts polled by Thomson Reuters expected the company to report an adjusted profit of 47 cents a share on revenue of $593 million.

Write to Bowdeya Tweh at Bowdeya.Tweh@wsj.com

(END) Dow Jones Newswires

August 02, 2017 08:19 ET (12:19 GMT)

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