Case Study: American Homecare Federation

American Homecare Federation, Inc. logo

Deal Synopsis

Overview

  • Global Healthcare Advisors (“GHA”) was retained by American Homecare Federation (“AHF”) to source potential buyers and partnerships

About AHF

  • Based in Connecticut, AHF is a leading provider of hemophilia pharmaceutical services and specialty infusion treatment
  • AHF services the homecare needs of bleeding disorder patients nationally, with a strong market presence in the Northeastern United States

About Diplomat

  • Diplomat (NYSE: DPLO) is the nation’s largest independent provider of specialty pharmaceutical services
  • Diplomat works to connect patients who suffer from chronic and rare conditions to medication, important information, discovery, and funding
  • Diplomat serves specialized needs such as oncology, inflammatory and autoimmune conditions, HCV, and blood disorders

Our Role

Strategy

  • GHA played a key role in guiding AHF through a sell-side process by utilizing its proprietary channels to create a “win-win” scenario for both parties

Execution

  • American Homecare Federation approached GHA after participating in a lengthy sale process and engaging with four other potential buyers
  • Ultimately, GHA was able to bring Diplomat to the table, smooth out pricing negotiations, and facilitate the integration process between AHF and Diplomat

Value Creation

Transaction Outcomes

  • AHF’s management team was concerned about pricing and post-closing initiatives, but confirmed that GHA successfully managed expectations during integration, kept negotiations realistic, and communicated closing timelines to both parties
  • AHF’s CEO, Jim Calnan, was able to continue working with Diplomat as a consultant during integration, and management and two pharmacists were able to remain part of the team after the transaction
  • AHF’s sale to Diplomat eventually closed at the end of 2013, connecting a $32 million specialty pharmacy with a $2 billion public market leader in specialty pharmaceuticals
  • Diplomat’s acquisition of AHF has allowed them to grow their specialty pharmacy platform by fully integrating AHF as their “Diplomat Specialty Infusion Group” to offer combined clinical experience, new customized programs, and nationwide treatment

Fortunately, our team was able to connect with GHA towards the end of a tiring sale process and we eventually found a cultural fit. Our management team believes GHA was professional, ethical, attentive, and tenacious in closing our deal with Diplomat.

Jim CalnanAmerican Homecare Federation