August 6, 2020
New York, NY – Avita (or the “Company”), a portfolio company of Kinderhook Industries, LLC (“Kinderhook”), announced today the divestitures of its non-core retail pharmacy and specialty pharmacy assets. Both carve-out sales were made to a leading national pharmacy. Financial terms of the transactions were not disclosed.
The divestitures of the non-core retail pharmacy and specialty pharmacy assets were key strategic initiatives planned with the Company’s acquisition of Long’s Drugs in late 2019. The transactions reiterate the Company’s focus on providing solutions to its Covered Entity partners, including AIDS Services Organizations, Ryan White/STD Grantees and Federally Qualified Health Centers, through its nationwide portfolio of more than 60 on-site pharmacies. Recently, the Company announced the re-branding of its consolidated network of pharmacies as Avita.
“We want to thank our employees at the retail and specialty business segments who have done an exceptional job serving our customers and their communities,” said Lorrie Carr, CEO of the Company. “These transactions will allow us to align our resources and streamline our focus on our Covered Entity partners, while facilitating the execution of our long-term expansion plan.”
Chris Michalik, Managing Director of Kinderhook Industries, stated, “These strategic divestitures are important milestones in executing on the Company’s strategic vision. The proceeds obtained from these transactions will provide additional liquidity to support future growth.”
Kirkland & Ellis LLP served as legal counsel to Kinderhook on the transactions.