Riordan, Lewis & Haden Acquire a Controlling Interest
in The Apothecary Shops

Transaction

• The Apothecary Shops (“TAS”) is specialty pharmacy based in Phoenix, AZ that offers both patients and physicians superior service through 14 retail locations primarily in the Western US as well as a home delivery method
• The owner wished to diversify his wealth by taking some cash off the table
  The owner had previously been contacted by several private equity groups (“PEG’s”)
• After multiple failed attempts to close a transaction, he retained FPP to run a formal process

Challenges

• Hurdles in consummating a transaction included:
  • Credit Crunch: A challenging macroeconomic environment led by uncertainty in the credit markets and the interrelated liquidity crisis for banks, hedge funds, etc.
  • Time constraints: The CEO and Owner engaged FocalPoint in July 2008 with the understanding that there would be serious tax consequences for the Shareholder if the deal did not close by year end 2008

Solution

• FocalPoint (“FPP”) contacted a focused group of financial investors and managed to secure multiple offers for the business with a wide range of alternatives for the owner. Additionally, FPP:
  • Maximized value for TAS while simultaneously securing a larger equity check from the PEG’s, thus increasing the surety to close
  • Assisted in navigating the capital markets and preparing lender presentations to obtain several senior debt term sheets
  • Negotiated a stock option pool for the non-shareholder senior management team
• FocalPoint was able to create additional value by expediting the process from letter of intent (“LOI”) to close
  • FPP executed what is typically a nine to twelve month process in five months without sacrificing value
  • FPP led all pivotal negotiations (including multiple LOI’s, term sheets, definitive documents, etc.)

The Owner decided to sell a controlling interest of the company to Riordan, Lewis & Haden, a national private equity group that will provide both capital and expertise to propel the company to the next level. The Owner maintained a meaningful equity stake in the TAS as he is excited about its future prospects