GE Capital’s Healthcare Financial Services (HFS) business announced today that it has provided a $320 million senior secured credit facility to Diplomat Pharmacy, Inc., the country’s largest independent specialty pharmacy. GE Capital Markets was lead arranger and bookrunner on the transaction.
A portion of the funds was used to acquire BioRx, LLC, a Cincinnati, OH-based highly specialized pharmacy and infusion services company that provides treatments for patients with ultra-orphan and rare, chronic diseases. The remainder of the funds will be available for working capital and other general corporate purposes.
Headquartered in Flint, MI, Diplomat focuses on medication management programs for people with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, HIV, specialized infusion therapy and many other serious or long-term conditions. In addition, the company provides patient support services through national retailers and major hospitals.
Sean Whelan, Diplomat’s CFO, said,“We were looking for timely and reliable execution of this credit facility, with flexible terms to support our continued rapid growth. GE Capital’s healthcare finance team understands our business very well, which really helped in the structuring and execution of this transaction.”
“We’re pleased to have successfully completed this latest financing for Diplomat,” said David Varhol, managing director of GE Capital, Healthcare Financial Services’ corporate finance team. “We’re seeing continued rapid growth and consolidation within the specialty pharmacy industry, particularly in the specialty infusion space. This acquisition helps expand Diplomat’s presence in specialty infusion while it continues its rapid organic growth.”
Diplomat (diplomat.is) serves patients and physicians in all 50 states. Headquartered in Flint, MI, the company focuses on medication management programs for people with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, HIV, specialized infusion therapy and many other serious or long-term conditions. Diplomat opened its doors in 1975 as a neighborhood pharmacy with one essential tenet: “Take good care of patients, and the rest falls into place.” Today, that tradition continues always focused on improving patient care and clinical adherence.
About GE Capital, Healthcare Financial Services
GE Capital’s Healthcare Financial Services (HFS) business is one of the most active capital providers in the U.S. healthcare market, deploying approximately $10.5 billion in new commitments to customers via 240+ transactions in 2014. That adds up to more than $80 billion in financing over the past 11 years. For the third consecutive year, HFS was the top lead arranger for financings up to $1 billion in U.S. healthcare leveraged finance.
Customers across 45 healthcare sectors including senior housing, hospitals, medical offices, outpatient services, pharmaceuticals and medical devices rely on HFS to finance acquisitions, refinance existing debt, support working capital needs and fund growth initiatives. With in-depth industry knowledge and expertise, the HFS team of professionals creates business and financial solutions tailored to meet the individual needs of its customers. GE Capital (gecapital.com) offers consumers and businesses around the globe an array of financial products and services.
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