The Carlyle Group is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit, and Investment Solutions.
FREMONT, CA: Pharmapacks, a leading e-commerce enablement platform and retail seller for brands across major e-commerce marketplaces, announced a strategic investment of more than $250 million from global investment firm The Carlyle Group to accelerate the company's growth plans. The growth investment places Pharmapacks' enterprise value at approximately $1.1 billion.J.P. Morgan served as lender and advisor to the Company.
Pharmapacks was founded as a single brick and mortar pharmacy and has since evolved into a platform providing brands with best-in-class e-commerce capabilities. Since 2010, Pharmapacks has cultivated extensive partnerships with consumer brands across e-commerce marketplaces in North America, including Amazon, Walmart, eBay, Target, Google, and Facebook.
"Pharmapacks is experiencing unprecedented growth with massive market support and highly attractive industry dynamics," said Andrew Vagenas, Chief Executive Officer of Pharmapacks. "We are thrilled that our partnership with Carlyle, a world-class investment firm with extensive connectivity, data and global resources, will provide us with an opportunity to take significant steps to enter the next phase of our growth plans."
Powered by its proprietary platform, Pharmapacks is trusted by millions of customers to provide for their daily needs. After reaching over $250 million in sales in 2019, Pharmapacks is on a current run rate to achieve approximately 60 percent year-over-year growth. With the opening of an additional 230k square foot replenishment center this month, Pharmapacks is expected to fuel accelerated growth in Q4.
"We're thrilled to partner with another founder-led growth company, leveraging the global resources of the Carlyle platform to support Pharmapacks' acceleration," said Jay Sammons, Carlyle's Head of Global Consumer, Media & Retail. "We are focused on identifying companies that are growing significantly faster than the market and benefiting from strong secular tailwinds. As a company sitting at the cross section of a number of attractive trends, including the massive and rapid expansion of ecommerce, we have strong conviction in Pharmapacks' ability to achieve sustainable growth."
The investment in Pharmapacks is a continuation of Carlyle's long-term global commitment to Consumer, Media & Retailin which it has invested more than $21.5 billion of equity since inception. Equity capital for the investment came from Carlyle Partners VII, an $18.5 billion fund that makes majority and strategic minority investments primarily in the U.S. in targeted industries, including Consumer, Media & Retail.