The Carlyle Group LP (Nasdaq: CG) has agreed to buy pharmacy benefit manager WelDyneRx. The PE firm is making the investment out of the $13 billion Carlyle Partners VI U.S. buyout fund. Financial terms were not disclosed.
The acquisition comes as employers and patients face soaring health care costs. PBM’s are playing an increasingly larger role in negotiating plans between employers and insurers. Lakeland, Florida-based WellDyneRX provides prescription drug management between patients and providers through retail and specialty pharmacies. WellDyne RX serves employers, unions and providers. “We strive as a firm to invest in companies that improve accessibility and affordability of health care,” says Carlyle global health care head Stephen Wise.
In 2015, CVS Health Corp. (NYSE: CVS) bought nursing-home pharmacy Omnicare Inc. and also added Target Corp.’s (NYSE: TGT) pharmacies. Also in 2015, UnitedHealth Group Inc.’s (NYSE: UNH) OptumRx purchased Catamaran Corp., another provider of pharmacy benefit management services.
Carlyle has been active with deals lately. The firm is buying Japanese business software developer WingArc1st; acquired a majority stake in JenCap Holdings, an insurance broker and Wholesale Trading Co-Op Insurance Services and raised $2.4 billion for its Carlyle Equity Opportunity Fund II middle-market buyout fund.
J.P. Morgan Securities LLC (NYSE: JPM), GrayRobinson along with Skadden Arps Slate Meagher & Flom LLP are advising WellDyneRX. Latham & Watkins is representing Carlyle.