Premier said it completed a strategic review of alternatives for the company and was seeking buyers for some or all of its Contigo Health and S2S Global subsidiaries.
The group purchasing and consulting company on Monday also announced a $1 billion share repurchase program, including a $400 million accelerated stock repurchase agreement with Bank of America.
In May, Premier said its board had established a special committee of directors to consider alternatives that could include a sale, financial restructuring or partnerships. At the time, President and CEO Michael Alkire said changing market dynamics and a challenging operating environment prompted the review.
In announcing the completion of the review, Alkire said the company was undertaking a more focused strategy to automate and streamline the supply chain and best use its capabilities to support providers and other customers.
Contigo Health is Premier's direct-to-employer business and S2S Global is a direct sourcing subsidiary. In July, Premier sold its non-heathcare group purchasing organization to Omnia Partners.
The stock buyback program could include open market purchases, private transactions and other means of acquiring the stock and has an end date of June 30, 2025, the company said. Premier said the repurchases would be funded with cash on hand and by tapping its existing credit facility.
Also Monday, the company reported fiscal 2024 second-quarter net income of $52.9 million, or 45 cents a share, compared with $64.4 million, or 54 cents a share, in the comparable year-ago period. Revenue for the quarter ended Dec. 31, 2023 fell 7% to $334.7 million.
