Letco Companies Acquired by Harvard Drug Group

PITTSBURGH–In a deal announced Friday by merger-and-acquisition
firm The Braff Group, pharmacy specialists The Letco Companies has
been acquired by The Harvard Drug Group, a portfolio company of
H.I.G. Capital, a Miami-based private equity group. Braff initiated
the transaction.

Founded more than 20 years ago, Decatur, Ala.-based Letco
provides turnkey solutions for pharmacies worldwide, specializing
in respiratory and compounded, customized medications, as well as
technology-driven diagnostics. The company offers a suite of
pharmacy operations consulting, compounding chemicals, equipment
and supplies, pre-mix medications and industrial facilities
equipment.

Additionally, the firm is recognized as a developer of
technology designed to improve efficiencies in both durable medical
equipment and pharmacy operations. In particular, Letco developed
the Instant Diagnostics System, which facilitates the qualification
of patients requiring oxygen therapy nationwide.

The company also offers chemicals, training and technical
support for compounding pharmacists.

According to the announcement, since 2004, Letco has posted an
annual compound growth rate of more than 66 percent. Mickey Letson,
one of the company principals, will continue to lead the company as
an executive and new shareholder of Harvard Drug, the
second-largest distributor of generic drugs in the United States.
Based in Livonia, Mich., the company supplies generic and branded
drugs to more than 6,700 retail customers, including independent,
regional and national pharmacies. Its institutional customers
include hospital central-purchasing agents, long-term care
facilities and government clients.

“The acquisition of Letco not only adds branded and generic
respiratory medications to Harvard Drug’s array of product
offerings, but it also opens up new distribution channels for its
products and services,” said Chuck Gaetano, managing director for
Braff. “Moreover, with Mickey Letson’s continued involvement, the
company adds an experienced, visionary leader to its management
team.”

Terms of the deal were not disclosed.

H.I.G., which acquired a stake in Harvard Drug in January, has
numerous other health care holdings including Accupac, Align
Networks, APS Healthcare, Gould & Lamb, HealthStar, JC
Nationwide and MSC. The investment firm has more than $4 billion of
equity capital under management.