Daily News: February 8, 2018

SSG Advises BillNat on Asset Sale to CVS Affiliate


SSG Capital Advisors acted as the investment banker to BillNat in the sale of substantially all of its assets to an affiliate of CVS Health.

The sale was part of a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division. The transaction closed in January 2018.

BillNat, a wholly-owned subsidiary of Frank W. Kerr, is a retail pharmacy chain in Southeastern Michigan which operates 21 locations under the name “Sav-On Drugs.”

In early 2016, Kerr experienced financial difficulties which resulted in its filing for bankruptcy protection. In order to maximize recovery for Kerr stakeholders, SSG was retained in June 2016 to explore strategic alternatives for BillNat.

SSG conducted a comprehensive marketing process, which resulted in a wide range of interest from potential strategic parties to achieve an optimal outcome for the company and its stakeholders. The process resulted in 10 offers for the assets in whole or in parts. BillNat ultimately reached an agreement with CVS for substantially all of the company’s assets.

In October 2017, BillNat filed for Chapter 11 protection. While significant post-petition interest was expressed, CVS’s stalking horse bid was ultimately deemed to be the highest and best offer.