TPG Said Near Deal to Purchase Envision Pharmaceutical

TPG Capital, the private-equity firm started by David Bonderman and Jim Coulter, is close to an agreement to buy pharmacy-benefits manager Envision Pharmaceutical Holdings Inc., according to a person with direct knowledge of the transaction. Terms weren’t disclosed.

The deal may be announced as early as today, said the person, who asked not to be identified because the agreement isn’t final. Envision, founded in 2001, has annual revenue of more than $3.5 billion.

Pharmacy-benefits managers, known as PBMs, process prescription-drug claims for health-plan customers and negotiate discounts and rebates with drugmakers. The industry is consolidating as PBMs compete to cut costs for their corporate and government clients. Express Scripts Holding Co., the largest U.S. PBM, bought Medco Health Solutions Inc. last year for $29.1 billion, which was followed by SXC Health Solutions Corp.’s $4.4 billion acquisition of Catalyst Health Solutions Inc.

Members of Envision’s management plan to keep a minority stake in the Twinsburg, Ohio-based company, while founders James Mindala, Kevin Nagle and Barry Katz will continue to run the business, the person said.

Owen Blicksilver, a spokesman for TPG at Owen Blicksilver Public Relations Inc., declined to comment, as did Josh Paulen, an Envision spokesman.

TPG, based in Fort Worth, Texas, has announced deals valued at about $5.3 billion in the past 12 months, according to data compiled by Bloomberg. That includes the $1.9 billion buyout of Par Pharmaceutical Cos., a maker of generic drugs.

To contact the reporter on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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