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Twinsburg-based national health-care firm Envision to be sold

By Jim Mackinnon
Beacon Journal business writer

Twinsburg-based Envision Pharmaceutical Holdings Co. is being bought by private investment firm TPG.

Terms were not disclosed; the deal is expected to close in the last three months of the year. Privately owned Envision, founded in 2001 in Aurora, said it had revenue of more than $3.5 billion last year.

Envision has about 750 employees including 275 in Twinsburg and 150 in North Canton. In 2006, the company moved its headquarters from Aurora to Twinsburg because it had a previous business affiliation in Twinsburg and liked the community. The headquarters is at 2181 E. Aurora Road.

Envision’s businesses include Envision Pharmaceutical Services, a national pharmacy benefit management company; Envision Insurance Co., a national provider of Medicare D plans; Envision Medical Solutions Inc., which administrates prescription savings plans and prescription savings cards; mail order and specialty drug service Orchard Pharmaceutical Services Inc.; and infertility and fertility pharmacy services business Design RX.

Envision and TPG said in a press release issued Monday that Envision’s three founders and senior managers “will take a significant minority interest in the company.”

Envision founders James Mindala, Kevin Nagle and Barry Katz will continue to lead the company. Mindala is from Chagrin Falls; Nagle is in Sacramento, Calif., and Katz is in Miami.

Once the deal is finished, the three will be represented on the company’s board of directors.

Envision’s headquarters will remain in Twinsburg, the company said.

According to Envision Chairman Mindala, a chance meeting in March between Envision and TPG executives at a bank-sponsored seminar in San Francisco led to the deal.

“We are delighted to partner with TPG, which has an impressive history of investing in health-care companies and supporting their growth,” Nagle, the chief executive officer, said in a statement.

“We see tremendous opportunity for a mid-sized, high-service transparent [pharmacy benefit company] to continue to grow rapidly and expand its customer base,” Jeff Rhodes, TPG principal, said in a statement.

TPG is based in Fort Worth, Texas, and has offices elsewhere, including New York City.

Bloomberg News reported that TPG has announced deals valued at about $5.3 billion, including $1.9 billion to buy generic drug maker Par Pharmaceutical Cos., over the last 12 months.

Envision’s advisers in the deal included law firm Baker Hostetler and banker JPMorgan.

TPG said its financial advisers included Bank of America Merrill Lynch and Credit Suisse.

JPMorgan, Bank of America Merrill Lynch and Credit Suisse will provide funding to TPG as part of the transaction.

TPG describes itself as a global investment firm with $56.7 billion of assets. The firm was founded in 1992 as part of the process that brought Continental Airlines out of bankruptcy.

The company buys or invests in numerous businesses.

It remains to be determined whether Envision at some point will be spun off by TPG.

TPG’s current holdings and investments include Neiman Marcus, American Tire Distributors, Petco, Caesars Entertainment, Fender Musical Instruments and J. Crew. Health-care businesses include Oxford Health Plans, Aptalis Pharma, Biomet, Immuco and Surgical Care Affiliates.

Besides Continental, TPG’s previous holdings and investments included Burger King, Belden and Blake Corp., Del Monte Foods Co., Ducati Motor Holdings, MGM and Alltel Corp.

Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com



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