Matrix Capital Markets Group (804) 780-0060 - Case Study: King Pharmaceuticals

Case Study: King Pharmaceuticals - Divestiture

Situation

King Pharmaceuticals is a publicly traded manufacturer and marketer of branded pharmaceutical products headquartered in Bristol, TN
As a result of prior acquisitions, King had inherited a line of animal health products sold to the veterinary market that were considered non-core and a distraction to management

Objective

King recognized that there was significant intrinsic value in their branded veterinary pharmaceuticals, however that value was rapidly eroding as King chose not to focus management or financial resources on the division

Solution

Matrix Capital was engaged by King to market the product lines to strategic buyers in order to maximize the value of the vet brands before they were irreparably damaged in the market place due to ongoing lack of support
Matrix Capital underwent a series of marketing efforts, contacting both domestic and foreign strategic buyers active in the veterinary market
Through a disciplined and controlled auction process, Matrix Capital was able to successfully maximize sale proceeds for the product lines and King realized a return of 3.1x product revenue in sale proceeds