Jun 20, 2018 5:10:00 AM |
June 20, 2018 (Boston, MA) – Covington Associates LLC, a leading middle market investment bank announced its role as advisor to Fred’s Inc. on the sale of certain assets of EntrustRx, a specialty pharmacy unit, to a subsidiary of CVS Health Corporation. The aggregate consideration paid was $40 million, plus an amount equal to the value of inventory of EntrustRx.
Commenting on the sale, Fred’s Interim CEO Joe Anto said: “We are pleased to conclude the sale of EntrustRx, an important step in our plans to monetize non-core assets as part of our broader turnaround efforts. The cash proceeds will allow us to pay down a significant portion of our debt and also be used for general corporate purposes.”
About Covington Associates LLC
Covington Associates is an investment banking firm offering mergers and acquisitions (“M&A”) advisory to middle-market companies across the Healthcare, Business Services, Consumer & Industrial, and Technology verticals. Founded in 1991, the vision for Covington has been to provide clients with the highest caliber of senior-level attention and to remain an advice driven and results focused organization. Since its inception, Covington Associates has completed more than 300 transactions globally for both private and publicly traded companies totaling over $15 billion. For more information visit www.covllc.com.
About Fred’s Inc.
Tracing its history back to an original store in Coldwater, Mississippi, opened in 1947, today Fred’s, Inc. operates approximately 600 general merchandise and pharmacy stores, including 12 franchised locations. With unique store formats and strategies that combine the best elements of a value-focused retailer with a healthcare-focused drug store, Fred’s stores offer frequently purchased items that address the everyday needs of its customers. This includes nationally recognized brands, proprietary Fred’s label products, and a full range of value-priced selections. For more information about the Company, visit Fred’s website at www.fredsinc.com.
About CVS Health Corp.
Headquartered in Woonsocket, Rhode Island, CVS Health is a one-of-a-kind health care Company that helps patients get the care they need through the channel that works best for them. CVS Health’s extensive suite of assets positions to play an important role in solving the cost, quality, and access issues in the evolving health care landscape. For more information visit https://www.cvs.com/.
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