West Palm Beach & Sunrise Florida. ComVest NationsHealth Holdings, LLC, a wholly owned subsidiary of ComVest Investment Partners III, L.P., announced today that has it completed its previously announced acquisition of NationsHealth, Inc. (OTCBB:NHRX – News).
In connection with the closing of the transaction, ComVest made a $5.0 million investment in NationsHealth in the form of convertible preferred stock at $0.12 per share, the proceeds of which will be used by NationsHealth for general working capital purposes. In addition, ComVest has the right to make an additional $2.0 million investment in NationsHealth convertible preferred stock at $0.12 per share for a period of one year following the closing date. On April 30, 2009, upon the signing of the definitive agreement, ComVest provided NationsHealth a bridge loan in the principal amount of $3.0 million, which converted into additional shares of NationsHealth convertible preferred stock at $0.12 per share upon closing.
“I am excited to welcome NationsHealth into the ComVest portfolio of companies,” commented Michael S. Falk, ComVest’s Chairman. “We look forward to NationsHealth, and its CEO, Dr. Glenn Parker, using the additional capital to execute upon strategic initiatives and accomplish long-term plans and produce great partnerships with its customers, suppliers and employees.”
In connection with the transaction, NationsHealth entered into amendments with its credit facility lender and subordinated note holder, pursuant to which both debt facilities will remain in existence on substantially similar terms and conditions following the closing.
About ComVest:
The ComVest Group is a leading private investment firm focused on providing debt and equity solutions to middle-market companies with enterprise values of up to $250 million. Since 1988, ComVest has invested more than $2 billion of capital in over 200 public and private companies worldwide. Through its extensive financial resources and broad network of industry experts, ComVest is able to offer its companies total financial sponsorship, critical strategic support and business development assistance.
About NationsHealth, Inc.
NationsHealth seeks to improve the delivery of healthcare to Medicare and managed care beneficiaries by providing medical products and prescription related services. NationsHealth provides home delivery of diabetes supplies and insulin pumps, medications and other medical products to patients across the nation. In addition to its medical products business, NationsHealth also provides education, marketing, enrollment and member service to insurers offering Medicare Part D prescription drug plans and other Medicare insurance coverage. NationsHealth has an agreement with CIGNA to service its Medicare Part D prescription drug plans nationally. For more information, please visit http://www.nationshealth.com