Regional pharmacy chain Express Rx — in conjunction with New York-based private equity firm MHR Fund Management LLC — has acquired 10 pharmacy locations from Fred’s Inc.
The Fred’s pharmacies — located in rural areas of five states — will join Express Rx’s eight existing locations in Oklahoma, Missouri, and Arkansas. Financial details were not disclosed on the transaction, which is expected to close in November.
Fred’s filed for Chapter 11 in early September and is executing an “orderly wind-down of its operations.” In late September, the company sold contracted pharmacy assets to Walgreen Co. for $9.4 million.
Founded in 2013, Little Rock-based Express Rx said it plans to maintain employment levels at the newly acquired pharmacy locations and to keep prescription and health care access in rural communities (see list below).
“We welcome the opportunity to provide high-quality health care to Fred’s customers and their communities,” Express Rx CEO Galen Perkins said, in a release.
Pharmacies acquired by Express Rx and MHR:
Fred’s Pharmacy, 303 N. Hood St., Lake Providence, Louisiana
Fred’s Xpress, 705 Plank Rd. Hwy. 128, Saint Joseph, Louisiana
Fred’s Pharmacy, 2001 W. Court St., Winnfield, Louisiana
Fred’s Pharmacy, 1068 Hwy. 61 N., Tunica, Mississippi
Fred’s Xpress, 801 E. Jackson Rd., Union, Mississippi
Fred’s Xpress, 101 W. Sweet Potato St., Vardaman, Mississippi
Fred’s Pharmacy, 251 S. Washington St., Ripley, Tennessee
Fred’s Pharmacy, 211 South Main St., Morgantown, Kentucky
Fred’s Pharmacy, 1128 Second Ave. NE, Fayette, Alabama
Fred’s Xpress Pharmacy, 1360 Military St. S., Hamilton, Alabama
MHR manages $5 billion in capital and invests in public and private companies in a variety of industries. The firm holds a sizable stake in entertainment company Lionsgate, for example.
“MHR is pleased to partner with the experienced executives at Express Rx,” Josh Sigmon, a principal at MHR, said in a release. “We are confident that our acquisition of these Fred’s pharmacies will provide stability and assurance to local communities and employee bases.”
What does this transaction mean for the strategic options for your pharmacy or healthcare services business?
Contact Paragon Ventures for more information. www.paragonventures.com 800-719-1555