KKR & Co. LP is acquiring PharMerica Corp. via a newly formed company which counts Walgreens Boots Alliance Inc. as a minority investor.
KKR will pay $29.25 per share in cash, or $1.4 billion in total, to acquire PharMerica, a provider of institutional pharmacy, specialty infusion and hospital pharmacy management services.
The consideration is an 18% premium to PharMerica's 90-day volume weighted average.
KKR plans to take PharMerica private, and the company will be delisted from the New York Stock Exchange following customary shareholder and regulatory approval.
The deal is backed by the PharMerica board.
UBS Investment Bank and BofA Merrill Lynch are serving as financial advisors to PharMerica and Davis Polk & Wardwell LLP is serving as the company's legal adviser.
Simpson Thacher & Bartlett LLP and Weil Gotshal & Manges LLP are serving as legal advisers to KKR and Walgreens Boots Alliance, respectively.
Goldman Sachs, Morgan Stanley, Wells Fargo, Jefferies and KKR Capital Markets will lend money to finance the deal.