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Emdeon buys Goold Health Systems

BY Alaric DeArment

NASHVILLE, Tenn. — Emdeon has bought a company that provides pharmacy benefit and related services to state Medicaid agencies, Emdeon said.

Emdeon announced the acquisition of Goold Health Systems. Financial terms of the deal were not disclosed.

"The acquisition expands Emdeon’s position in the government pharmacy benefit administration market while enhancing our existing pharmacy benefit operations," Emdeon EVP pharmacy services Kevin Mahoney said.

 

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Powerade enters water-enhancement arena with new zero-calorie Drops

BY Jason Owen

ATLANTA — Powerade, a Coca-Cola brand, announced last week the addition of a new zero-calorie water-enhancement product that provides the same hydration solution as the traditional ready-to-drink sports beverage.

Powerade Zero Drops transforms regular tap or bottled water into a zero-calorie sports drink to replenish necessary electrolytes — like calcium, magnessium, potassium and sodium — lost through sweat during workouts with its Ion4 Advanced Electrolyte System.

Each variety of Powerade Zero Drops is available in a 3-fl oz squeezable bottle and makes approximately 24, 8-fl oz servings. The convenient size allows the consumer to forego carrying larger, heavier bottles, marketing to those who exercise away from the home.

“Convenience is key,” said Ilan Sobel, senior vice president, Glacéau. “Between class, practice, errands and work, our lives are becoming busier and busier by the day. With Powerade Zero Drops, we’re providing athletes with even more options to help hydrate with sports drinks. And, we’re doing it without sacrificing any of the great-taste or zero-calorie, electrolyte-enhanced refreshment that people have come to expect from us.”

Powerade Zero Drops comes in three flavors: mountain berry blast, fruit punch and orange. Zero Drops has a suggested retail price of $3.99 and offers 33% more servings versus the primary competitive flavor-enhancer with electrolytes, the company stated. Powerade Zero Drops can be found in the drink aisle at retailers nationwide.


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Safeway to sell Canadian operations to Sobeys

BY Michael Johnsen

PLEASANTON, Calif. — Safeway on Wednesday announced that it has entered into an agreement to sell its Canadian operations through a sale of the net assets of Canada Safeway Limited to Sobeys, a Canadian food retailer and wholly-owned subsidiary of Empire Company Limited, for $5.7 billion in cash plus the assumption of certain liabilities. 

"We are pleased to enter into this agreement with Sobeys in order to realize the higher multiples attributed to Canadian supermarket companies," stated Robert Edwards, president and CEO of Safeway. "The substantial cash proceeds from this transaction will allow us to create value for Safeway stakeholders and contribute to the growth of the ongoing business." 

The transaction has been approved by the boards of directors of both companies. The transaction is anticipated to close in the fourth quarter of 2013 and is subject to customary closing conditions, including approval under the Competition Act in Canada.

The proceeds from this transaction are expected to be used to pay down $2 billion of debt, with the majority of the remainder to be used to buy back stock, Safeway reported. In addition, some of the proceeds may be used to invest in growth opportunities.

In the trailing 12 months ended March 23, Canada Safeway’s revenues were $6.6 billion. In addition, Canada Safeway’s operating profit was $420.3 million and EBITDA was $534.2 million, both adjusted for intercompany related transactions. 

Safeway remains responsible for Canada Safeway’s $294.6 million in public debt due March 2014, which is not included in the transaction, and will also retain cash and other receivables in a similar amount in Canada.

For its part, Sobeys gets a strong and immediate presence in the west of Canada with the addition of Safeway’s 223 stores, including 199 with in-store pharmacies. Also part of the deal are four distribution centers (Sobeys is both competing with and supplying Target in Canada), 62 gas stations, 10 liquor stores and 12 manufacturing plants.

This story has been updated throughout.


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