- PSG’s market-leading 340B Link business is being sold for $225 million nine years after Blue Wolf’s initial investment
- PSG built an innovative program providing significant funding to safety net hospitals
- Investment reflects Blue Wolf’s long-term, ESG-driven approach
Today, Blue Wolf Capital Partners (“Blue Wolf”), a New York-based private equity firm, announced the completion of the sale of Pharmaceutical Strategies Group’s 340B business (“PSG”) to Omnicell Inc. (NASDAQ:OMCL), a leading provider of medication management solutions and adherence tools for health systems and pharmacies. PSG’s 340B Link business is being acquired for $225 million, and the sale marks the exit of Blue Wolf’s last portfolio company in Blue Wolf Capital Fund II. Additional terms of the transaction were not disclosed.
Blue Wolf invested in PSG in 2011 in a rapidly changing healthcare environment. Building on vast regulatory expertise, and backed with Blue Wolf’s capital, PSG partnered with safety net hospitals to implement solutions to set up and administer a recently expanded federal program known as 340B, which today delivers a $14 billion annual lifeline from drug manufacturers to America’s rural and urban safety net hospitals. Blue Wolf’s long-term investment and focus on human capital and organizational transformation helped PSG become the industry leader in this vital part of America’s healthcare infrastructure.
“With our government and hospitals facing enormous financial pressure during the COVID-19 crisis, the value of funding from the 340B program enabled by PSG’s 340B Link solutions to hospitals that care for America’s most vulnerable population has been demonstrated more clearly than ever before. We’re incredibly proud to have partnered with David Borden and PSG to build this important business,” said Adam Blumenthal, Managing Partner at Blue Wolf. “PSG’s growth over the last nine years illustrates the benefit of being a long-term partner. It also showcases how we use our ESG lens to create value both for our investors and for society. This is an exciting time for the PSG business, and we see Omnicell as an ideal partner for its next phase of growth.”
“Blue Wolf has been a tremendous partner for PSG and has provided us with the necessary support and resources every step of the way as we built our 340B business,” said Dave Borden, Chief Executive Officer of PSG. “The Blue Wolf team’s knowledge of the complexities of the pharmaceutical marketplace and the broader healthcare value chain were essential in building this business, and we look forward to further expanding upon this growth with Omnicell.”
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