Graymark Healthcare to sell pharmacy unit to Walgreen
Graymark Healthcare Inc (NASDAQ:GRMH), a diversified healthcare company that operates in the same industry as Walgreen Company (NYSE:WAG), and CVS Caremark Corporation (NYSE:CVS), has agreed to acquire all of Graymark Healthcare’s pharmacy division.
* Says Walgreen to acquire 18 pharmacies in 5 states
* Expects transaction to close by Q4
* Graymark shares jump 23 pct
Graymark Healthcare Inc (GRMH.O) agreed to sell all assets of its pharmacy division to drugstore chain Walgreen Co (WAG.N) to focus on its sleep apnea business, sending its shares up 23 percent in after-market trade.
Graymark said it expects to realize a total enterprise sale value of about $35 million.
The company agreed to sell 18 ApothecaryRx stores located in five states and expects the transaction to be completed in the fourth quarter of 2010.
“Rapid growth in the sleep segment, strong margins and the lack of a definitive market leader in the sleep apnea space makes this a very desirable area for our focus and investment,” Graymark Chief Executive Stanton Nelson said in a statement.
Morgan Joseph LLC’s Healthcare Investment Banking Group was the exclusive financial advisor to Graymark.
Shares of Graymark, which have fallen 38 percent over the last one year, were trading up 23 percent after the bell. They closed at $1.09 Wednesday on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Roshni Menon)
CONTACT: 888-288-5215 · Please read our Full Disclaimer pertaining to this article.