Oak Hill’s Duane Reade Exit A Success, Not a Home Run
Oak Hill Capital Partners today agreed to sell New York-based drug store chain Duane Reade to Walgreen Co. for nearly $1.1 billion. Oak Hill earned just over 1.5x its money on the deal, according to a source familiar with the situation. Return-wise, it’s not a home run. But considering the company's struggle with debt and drug store industry consolidation (e.g., Rite Aid/Eckerd, CVS/Long's), it can be viewed as a solid double. Analysts called the price fair—it represents an 11.4x adjusted EBITDA multiple, which is only slightly higher than the 10.3x trailing EBITDA that CVS paid for Longs in 2008.
17 February 2010•2 mins read
