PharMerica Corporation (NYSE:PMC) shares are skyrocketing as the company announced its plans to go private.
KKR will assume about $490 million of PharMerica’s debt. The deal will net shareholders $29.25 in cash for each share of PMC stock, marking a 17% premium of the company’s closing share price on Tuesday.
“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,” PharMerica CEO Gregory Weishar said in a statement.
Walgreens co-chief operating officer Alex Gourlay said the move will give the pharmacy operator an opportunity to expand in a segment of health care that is on the rise.
The agreement will be completed sometime in early 2018, which is when PharMerica will no longer trade publicly. It was approved unanimously by the company’s board of directors.
The company has more than 120 pharmacies at treatment centers around the country. Doctors and nurses are the primary customers in these places, which include hospitals, nursing homes, oncology centers and more
PharMerica also unveiled its quarterly earnings results today, posting revenue of $592 million, a 14% increase year-over-year. The figure was $1 million below estimates.
PMC stock surged 15.4% on Wednesday.