February 3, 2022

Dallas, TX – Avita Pharmacy (“Avita” or the “Company”), a portfolio company of Kinderhook Industries, LLC, has completed the acquisition of two Southern California-based HIV-focused pharmacies. On February 1, 2022, Avita acquired the Garden Grove, CA and Mission Viejo, CA pharmacy locations formerly owned by Advantage Healthcare Services, Inc. (“Advantage”). The transaction represents Kinderhook’s 52^nd healthcare-related transaction. Financial terms of the transaction were not disclosed.

The acquired pharmacies serve over 5,000 patients and nearly 2,000 HIV lives across 300+ provider network locations and nine Covered Entity partners. All employees will continue to support the Avita team and clinical partners will experience a seamless transition as the companies integrate over the coming weeks.

The acquisition enables Avita to continue its focus on ensuring access to critical medications for underserved communities and patients with complex conditions, including HIV.

“It was Advantage’s alignment with Avita’s mission-driven culture and purpose, including a shared commitment to serve the LGBTQ+ community, that drew us to this acquisition.” said Avita CEO Michael Yount. “We are excited to continue supporting their clinical partnerships, adherence programs, and their pharmacist-led TelePrEP program.  Avita is excited to welcome the Advantage team members, clinical partners, and patients into the Avita family.”

“Avita’s tenured experience and trusted patient-first reputation in the HIV pharmacy market make it the ideal home for our pharmacies and employees,” said Vimal Bhanvadia, Founder and Managing Partner of Advantage Healthcare Services. “Dedication to the community and our patients has been core to our success and will be enhanced by the complementary services and capabilities that Avita brings to our partners.”

This acquisition is Avita’s fourth strategic acquisition since Kinderhook’s initial investment. “The acquisition marks another highly-strategic and accretive acquisition for Avita,” said Chris Michalik, Kinderhook Managing Director. “Under the leadership of Avita’s management team, the acquisition accelerates Avita’s rapid expansion as the prominent LGBTQ+ pharmacy and healthcare provider.”

“This is a tremendous acquisition for Avita and we are excited at the prospect of more acquisitions like this in the future,” said Matt Bubis, Kinderhook Vice President.  “Avita will continue to seek mission-oriented acquisition candidates like Advantage, who have established trust in their communities.”

Financing for the transaction was provided by a syndicate led by Madison Capital Funding LLC.  Kirkland & Ellis LLP served as legal counsel and Epstein Becker & Green, P.C. served as regulatory advisor to Avita.  Harbor Healthcare Consultants served as financial advisor and Thompson Coburn LLP served as legal counsel to Advantage.

For additional information about this transaction, please contact: 
Christian Michalik
Managing Director
(212) 201-6782
[email protected]
 
Matt Bubis
Managing Director
(212) 201-6788
[email protected]