UPDATE - PMSI sale is off
I reported last week that workers comp pharmacy benefit manager/DME supplier PMSI/Tmesys was near a deal to transfer the company from Amerisource Bergen to a new owner. Citigroup's investment banking arm was retained to sell the property, and PMSI was put up for sale in late January.
Firm bids were requested from interested parties in early March.
Sources indicate Amerisource Bergen and Citigroup were in the final stages of negotiating the transaction with a financial buyer late last week, with the deal slated to be announced yesterday.
That deal is off, and Amerisource has pulled the plug on any sale. Evidently they were not able to get the price they wanted, and have decided to hold onto PMSI - for the time being.
Here's how Amerisource characterized the situation:
The Valley Forge, Pennsylvania-based company said it will focus its efforts on turning around PMSI.
President and Chief Executive Officer David Yost said in a prepared statement, "Because the final bids did not reflect the turnaround value of the business (bold added), which we expect to capture, we will focus on significantly improving the business and delivering that value to shareholders."
He said he expects PMSI to improve in the second half of this fiscal year and show improvement in fiscal year 2009.