Intravenous Therapy Services' Acquisition by BioScrip

Transaction

• Intravenous Therapy Services, Inc. (“ITS”), a leading Southern California home infusion and specialty pharmacy provider, was rapidly expanding
• The owner wanted to take on a partner to pursue a regional rollout strategy, leveraging his first mover advantage in on-site ambulatory infusion suites and receive some liquidity either from a strategic partner or an equity sponsor

Challenges

• Hurdles in consummating a transaction included:
  • A changing regulatory landscape brought increased uncertainty to patient reimbursement issues
  • After building a state of the art facility, management needed further resources to expand its marketing activities and diversify its specialty therapy offerings into additional disease states

Solution

• After arranging growth financing with a supportive local lender, FocalPoint was able to create value throughout the transaction process by:
  • Effectively communicating key value drivers into a compelling offering memorandum
  • Seeking out a universe of qualified acquirers whose corporate culture most closely matched that of ITS
• FocalPoint contacted a selected group of strategic and financial purchasers and managed to secure multiple offers for the business and a wide range of alternatives for the management team, including:
  • Control and minority recapitalizations with private equity groups
  • 100% acquisitions by strategic buyers
• The Owner decided to sell 100% of the company to BioScrip, a national specialty pharmaceutical care solutions provider that will provide both capital and expertise to propel the company to the next level
• FocalPoint’s ability to penetrate the strategic buyers enabled management to choose from a number of attractive alternatives and make the decision that most appropriately suited their risk tolerance while maximizing value