Pharmacy benefit manager Catamaran Corp. said it has agreed to buy Restat for $409.5 million.

Milwaukee-based Restat says it is the biggest privately held PBM in the U.S. Pharmacy benefit managers (PBMs) administer health plans and drug benefits for employers and run mail-order pharmacies. They help cut costs by encouraging more use of generic drugs.

The deal will add $45 million of yearly EBITDA (earnings before some charges), and Lisle, Ill.-based Catamaran expects $20 million a year in synergies once integration is finished. Catamaran reported $362.7 million in EBITDA for 2012.

"The acquisition of Restat is a great opportunity for us as its core business aligns perfectly with ours. Restat is the first PBM acquired by Catamaran that is not a current client, and we are excited to combine Catamaran's flexibility with Restat's strengths in service and support," Catamaran Chairman and CEO Mark Thierer said in a statement this morning.

Restat has 150 to 200 employees, and "we expect to maintain a presence in Milwaukee," a Catamaran spokesman told Crain's in an e-mail this morning.

The deal is expected to close in the fourth quarter. Catamaran plans to finance the acquisition with credit and cash on hand.

Meanwhile, Catamaran's second-quarter profit more than doubled as it added customers and prescription claim volumes increased. Catamaran, formerly known as SXC Health Solutions, purchased fellow pharmacy benefits manager Catalyst Health Solutions last year in a cash-and-stock deal valued at more than $4 billion. The companies completed that deal shortly after the 2012 second quarter ended.

Net income rose to $63.4 million, or 31 cents per share, in the quarter ended June 30 from $27.3 million, or 20 cents per share, a year earlier.

Excluding items, earnings were 49 cents per share, above the average analyst estimate of 44 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 101 percent to $3.4 billion.

Reuters and the Associated Press contributed to this report.

Catamaran to buy Restat for almost $410 million originally appeared on the Crain's Chicago Business website.