|Bankrupt Chem Rx Corporation purchased by PharMerica|
|By Staff and Wire Reports|
|Monday, 27 September 2010 06:14|
Chem Rx Corporation (Pink Sheets:CHRXQ.pk) the third largest long-term care pharmacy in the United States- which had filed for Chapter 11 bankruptcy protection in the Delaware District of United States Bankruptcy Court on May 11, 2010 has announced that it has reached a "stalking horse" asset purchase agreement to sell substantially all of the assets of the company to PharMerica Corporation (NYSE:PMC), an industry-leading pharmaceutical services company serving residents in long-term facilities and settings.
PharMerica operates 90 institutional pharmacies in 41 states that serve more than 300,000 licensed beds for patients of long-term care facilities. PharMerica has approximately 6,000 employees nationwide. It is expected that there will be no disruption of service or deliveries to Chem Rx's clients as a result of today's filing and subsequent auction proceedings. Clients will continue to receive drugs, medical equipment and surgical supplies according to the same ordering processes and delivery schedules.
"We are excited about joining forces with PharMerica, which shares our commitment to providing clients with the drugs and supplies they need accurately and on time," said Jerry Silva, Chem Rx Chief Executive Officer. "This agreement will not only allow Chem Rx to continue serving our loyal customers in the same way we have for so many years, but also enable us to leverage the best technology available to ensure that we are at the forefront of long-term pharmacy care in the future. We believe that PharMerica is the best partner to take the company forward and we look forward to working with PharMerica throughout this process."
As standard procedure in the process, Chem Rx will file the stalking horse asset purchase agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers. The sale to PharMerica will include substantially all of Chem Rx's current assets, operations and employees.
Chem Rx was founded more than 40 years ago as a major institutional pharmacy serving the New York City metropolitan area, as well as parts of New Jersey, upstate New York, Pennsylvania and Florida.
Partnering with Chem Rx will allow PharMerica to expand into New York and New Jersey, where it currently does not have a presence. Chem Rx will continue to maintain normal business operations throughout this process and thereafter.