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

PHOENIX, AZ — The Apothecary Shops (“TAS”), a National Specialty Pharmacy, has sold a majority interest to Riordan, Lewis & Haden (“RLH”). FocalPoint Securities, LLC (“FocalPoint”) served as exclusive financial advisor to TAS. In addition to identifying RLH as the equity sponsor, FocalPoint helped to navigate the credit markets and raise the senior debt required to close the deal.

Despite the tough macro-economic environment during the fall of 2008, FocalPoint was able to expedite the sale process and deliver multiple letters of intent from sponsors seeking to invest in The Apothecary Shops. Ultimately, RLH, a Southern Californian-based private equity firm, was selected to partner with the management team to acquire a controlling interest in the business.

“The Apothecary Shops occupies a unique niche in specialty pharmacy, combining retail stores with a large home delivery business to deliver a superior patient experience. RLH was impressed with the Company’s strong management team and is confident the team can continue to build the business and navigate through these uncertain economic times,” commented Rob Zielinski of RLH.

“We had a couple of ‘false starts’ with equity sponsors prior to hiring FocalPoint,” said John Musil, CEO and owner of TAS. “In hindsight, the systematic process that they helped us develop and execute led to a successful closing.  I was very pleased with the results.”

Duane Stullich, a Managing Director at FocalPoint, added: “John and his team have built a fantastic platform for future growth. RLH saw the value in the business and offered fair value for it. They were a pleasure to work with and delivered what they promised.”

About The Apothecary Shops
The Apothecary Shops was founded in 1996 by John Musil as a community pharmacy focusing on the needs of patients, payors and service providers. In 1999 the business model changed to include specialty pharmacy services. The Company is a multi-faceted organization that combines several elements including clinical pharmacy expertise, specialty pharmacy, mail order pharmacy, community pharmacy, and compounding specialist. TAS has grown to fifteen retail locations within Arizona, California, Nevada, Utah and Ohio with distribution throughout the United States via wholesale and mail order. For more information, visit www.theapothecaryshop.com.

About Riordan, Lewis & Haden
Riordan, Lewis & Haden is a leading private equity firm that invests in high growth middle market enterprises focusing on the business services and healthcare/wellness sectors. The firm, with offices in Los Angeles and Orange County, provides capital and assists portfolio company management teams as they navigate the opportunities and challenges of growth. Working collaboratively with management, RLH provides expertise, contacts, and experience-based advice on important strategic issues. The firm currently manages over $400 million of capital. For more information, please visit www.rlhequity.com.

About FocalPoint
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm’s primary focus is on middle-market companies.
Please contact Duane Stullich, Nishen Radia or Julie Decker at (310) 405-7000 with any questions about this transaction.

www.focalpointllc.com

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© FocalPoint Securities, LLC 2010