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.
