Premier Inc. has announced a deal to sell its non-healthcare group purchasing organization (GPO) operations to Omnia Partners, a non-healthcare GPO, for approximately $800 million in cash.
The healthcare improvement company said in a statement that the transaction is an important step in its ongoing review of strategic alternatives and will unlock substantial value for its shareholders.
“We are excited to enhance our focus on our member services and core healthcare businesses as we continue executing our strategies to drive sustainable, long-term growth,” Premier president and CEO Michael Alkire commented.
“At the same time, we are evaluating the highest return opportunities for deploying the proceeds from this transaction, including the potential to accelerate the return of capital to stockholders.”
As a result of the divestment, Premier said Omnia will become the primary GPO for its non-healthcare members, which include educational, hospitality and recreation organizations, and will provide support to the channel partners that service non-healthcare GPO members.
It said these members will still have access to the Premier GPO portfolio. The transaction will have no impact on Premier’s healthcare businesses, and the company will maintain all existing healthcare contracts, services, solutions and programs, it added.
“Premier members will continue to enjoy the benefits of Premier’s programs, coupled with expanded access to the extensive Omnia portfolio of contracts,” Omnia founder and CEO Todd Abner added.
“Additionally, these members will benefit from the robust spend visibility and analytics tools that we offer, along with a senior team of subject matter experts to assist in the procurement process.”
Contact the author at stephen.gunnion@proactiveinvestors.com