Premier, Inc. Divests Ownership Position in S2S Global Through New Partnership With Prestige Ameritech
Advances Premier's strategy to focus on core businesses while continuing to support supply chain resiliency for U.S. hospitals and healthcare systems
Premier, Inc. (NASDAQ:PINC), a leading technology-driven healthcare improvement company, today announced it has entered into a partnership with Prestige Ameritech, Ltd. ("Prestige"), one of the country's largest manufacturers of personal protective equipment (PPE). Pursuant to the partnership agreement, Premier exchanged all its holdings in the S2S Global business ("S2S"), its direct sourcing subsidiary, for a 20 percent minority interest in Prestige. This new ownership interest is in addition to an existing indirect investment that Premier made in the company in 2020, increasing Premier's total ownership (direct and indirect) interest in Prestige to approximately 24.2 percent in the aggregate.
Prestige is one of the largest domestic manufacturers of medical and industrial face masks in the United States, supplying thousands of hospitals, physician offices, clinics and senior living facilities with products produced at a facility in Texas that is U.S. FDA-registered and International Organization for Standardization-certified. Prestige is certified as a Native American Owned Business, and the combination with S2S has the potential to create one of the largest diverse medical sourcing companies in the country.
"This expanded partnership will enable Premier to hone our focus on our core technology-enablement and smarter supply chain solutions as we continue to drive value for our members, partners, stockholders and other stakeholders," said Michael J. Alkire, Premier's President and CEO. "Additionally, our increased ownership of Prestige represents the next step in our supply chain resiliency strategy, which has been tremendously effective in ensuring that Premier members have differentiated access to domestically produced essential medical products, reducing their reliance on overseas manufacturing. We are confident that this transaction will ensure our continued alignment with Prestige as a partner in strategy while they take the S2S business to the next level."
"Prestige Ameritech is proud to assume Premier's ownership in the S2S Global business and build on our highly successful, long-standing partnership. With the size and scale of S2S's assets, we believe we will be able to expand into product categories that need additional competition and U.S. supply to avoid shortages and enhance supply chain resiliency," said Dan Reese, Prestige founder and CEO. "We look forward to continuing to work strategically with Premier as we provide innovative products that continue to deliver savings, while meeting and exceeding patient care needs."
About Premier, Inc.
Premier, Inc. (NASDAQ:PINC) is a leading healthcare improvement company, uniting an alliance of more than 4,350 U.S. hospitals and health systems and approximately 325,000 other providers to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier's news and investor sites on www.premierinc.com; as well as X, Facebook, LinkedIn, YouTube, Instagram and Premier's blog for more information about the company.
Cautionary Note Regarding Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts, including but not limited to those related to Premier's ability to advance its long-term strategies and develop innovations for, transform, and improve healthcare, the potential benefits of the Prestige Ameritech transaction and the potential performance of S2S Global as part of Prestige Ameritech's business, and the financial impacts of the Prestige Ameritech transaction and future ownership of an increased minority interest in Prestige Ameritech, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from historical results or from any future performance or achievements expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. Forward-looking statements may include comments as to Premier's beliefs and expectations as to future events and trends affecting its business and are necessarily subject to risks and uncertainties, many of which are outside Premier's control. More information on risks and uncertainties that could affect Premier's business, achievements, performance, financial condition and financial results is included from time to time in the "Cautionary Note Regarding Forward-Looking Statements," "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Premier's periodic and current filings with the SEC. Premier's periodic and current filings with the SEC are made available on Premier's website at investors.premierinc.com. Forward-looking statements speak only as of the date they are made, and Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events that occur after that date, or otherwise.
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