Australia: Blue Sky exits pharmacy services firm HPS for $114m

The private equity division of Blue Sky Alternative Investments Limited has sold its investment in pharmacy services firm HPS to EBOS Goup for over $114 million (AUD154 million).

HPS is Australia’s largest provider of outsourced pharmacy services to hospitals, correctional facilities, oncology centres and fertility clinics, with more than 100 sites nationally.

Blue Sky managed its investments in HPS for more than two years, doubling its earnings, driven by strong revenue growth from both existing and new customers.

“The investment will generate a return in excess of 25 per cent [aper annum] net of fees for investors in Blue Sky’s HPS funds,” Blue Sky said in a statement.

Consequently, the acquisition of HPS is expected to increase EBOS Group’s underlying EBITDA by at least 5 per cent in FY18 and will be EPS accretive from year one.

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The sale is expected to complete by June 30, 2017 and is subject to customary conditions precedent.

HPS’s key management will continue to operate the business under EBOS’ ownership and will form part of EBOS Group’s Institutional Healthcare business division.

With more than 40 years in the provision of services to health facilities, HPS now services over 100 sites and employs over 580 staff including over 200 pharmacists.

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EBOS group CEO Patrick Davies said the acquisition of HPS is an important strategic investment as it provides the group with a vertically integrated model in a market segment that has attractive long term growth prospects, including the continued introduction of new drugs.

“The acquisition of HPS continues EBOS’ history of expansion in both the Australian and New Zealand hospital markets where it is the leading provider of wholesale pharmaceutical services. By virtue of this acquisition, EBOS will be the leading provider of outsourced pharmacy services in the Australian hospital sector,” Davies said.

The acquisition will be fully debt financed.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.