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Scoop: Elevance clinches Paragon Infusion for $1B-plus

Illustration of a key ring hanging on an IV pole.

Illustration: Shoshana Gordon/Axios

Elevance Health is acquiring Paragon Infusion for well north of $1 billion, three sources tell Axios.

Why it matters: With at least one other infusion asset on the block right now, M&A in the space is starting strong in 2024.

Details: Paragon owner Peak Rock and Elevance declined to comment on financial terms, which were not disclosed.

  • Paragon was marketing itself off EBITDA of approximately $100 million, Axios reported in August.
  • Paragon generates about $1 billion in revenue, per that report.
  • Jefferies served as the sell-side adviser for Paragon.

What they're saying: "We were gearing up for a process in 2024, but nothing formal had been launched," Peak Rock managing director Spencer Moore tells Axios.

  • "We received significant inbound interest prior to a future process, which led the firm to entertain certain potential buyers."

Flashback: Peak Rock in late 2020 acquired Paragon for between $250 million and $275 million when the company was generating about $25 million in EBITDA.

  • Since then Paragon has grown at a 30% clip annually, Axios reported.
  • Peak Rock focuses on founder and family-led businesses, and started circling Paragon during the early days of COVID lockdowns — during a time when many sponsors were turned inward, Moore says.

How it works: Paragon provides home and on-site infusion therapy, plus specialty pharmaceuticals, rare disease care, and bleeding disorder treatment.

  • Along with its physical centers, Paragon also offers in-office infusion suites for physicians.
  • The company is licensed to serve patients in all 50 states and has around 50 infusion centers located across eight of them.

What's next: Triple-Tree will be shopping Boyne Capital-backed infusion provider Infusion Associates at JPMorgan next week.

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