Diplomat Pharmacy Inc. to Acquire LDI Integrated Pharmacy Services for $595M


Flint-based Diplomat Pharmacy Inc. today announced a definitive agreement to acquire Leehar Distributors for a gross purchase price of $595 million, doing business as LDI Integrated Pharmacy Services. The transaction is expected to close in 30-60 days.

“Bringing on LDI is an even bigger step as Diplomat evolves from a specialty pharmacy provider to a broader health care company,” says Phil Hagerman, CEO and chairman of Diplomat. “LDI expands Diplomat’s ability to meet growing demand from small and midsize health insurers, third-party administrators, and self-insured organizations. We can give payors access to a robust specialty platform to manage this high-cost, fast-growing component of pharmacy benefits.”

The news follows Diplomat’s acquisition of National Pharmaceutical Services (NPS) on Nov. 6, giving Diplomat a proprietary claims-processing system and pharmacy benefit manager (PBM) capabilities. The acquisition of LDI positions Diplomat to become a highly differentiated specialty company and give health care payors access to specialty platforms the manage pharmacy benefits.

“We now field a leadership team with decades of PBM and specialty experience,” says Hagerman. “The combined company will have the enhanced ability to serve middle-market payors hungry for a service model that helps patients achieve optimal well-being with complex therapies while delivering cost-containment strategies that impact pharmacy costs under both the medical and pharmacy benefit.”

Under the terms of the agreement, Diplomat will pay LDI $515 million cash and approximately $80 million in Diplomat common stock. LDI is expected to generate approximately $388 million in revenue and $41 million in adjusted EBITDA in 2017. The cash portion of the acquisition is expected to be funded by Diplomat’s new $795 million senior secured credit facility, the proceeds of which will also be used to terminate Diplomat’s outstanding credit facility.

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