Structured Partnership: Omnicare (NYSE:OCR)
Background
Omnicare (NYSE:OCR) is a provider of pharmacy-related services to long-term care facilities and other customers operating in the health care market. In 2013, Omnicare’s executive team made the decision to divest non-pharmacy-related holdings including SigmaCare, a leading provider of integrated clinical software solutions to skilled nursing facilities and other service providers within the long-term care industry. Although SigmaCare was deemed non-core, Omnicare recognized the upside that the business presented and preferred a partnership with a buyer that would make a significant investment in growing the business and also allow them to retain a minority equity stake.
Transaction Summary
- Marlin was selected by Omnicare and SigmaCare management as an ideal partner to provide strategic guidance and accelerate the company’s growth organically and through acquisitions
- We successfully established SigmaCare as a standalone business and structured the transaction to enable Omnicare to retain a minority position and a board seat
- Less than two weeks after the initial transaction, Marlin and SigmaCare acquired 6N Systems, a highly strategic add-on that filled an essential product gap by adding an integrated billing functionality
Results
Marlin’s flexibility allowed for a seamless transaction that enabled Omnicare to focus on its core business and provided SigmaCare a partner that has since contributed meaningful financial and strategic support. Additionally, we completed a second strategic add-on, HomecareCRM, which further expanded SigmaCare’s product offering and addressable market.