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Two major players in the pharmacy market are joining together.
Two powerhouses in the drug wholesaler business have joined forces.
AmerisourceBergen Corporation and H.D. Smith announced that they have signed a definitive agreement, under which AmerisourceBergen will purchase H.D. Smith for $815 million in cash.
H.D. Smith is a major player in the independent wholesaler sector. In a statement, AmerisourceBergen said that it plans to fund the acquisition through the issuance of new long-term debt.
AmerisourceBergen said that it expects revenue growth to be in the range of 8% to 11% percent, adjusted operating income growth to be in the range of 4% to 7% and pharmaceutical distribution services segment operating income growth in the range of 4% to 7%.
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The transaction is subject to regulatory scrutiny and is expected to close in early 2018.
Robert P. Mauch, Group President, Pharmaceutical Distribution and Strategic Global Sourcing at AmerisourceBergen, told Drug Topics that the acquisition is a good fit. “We share common values and culture. It’s taking the best of the best and creating something that’s even better.” Mauch added that over the next few years facilities and operations will likely be combined.
Dale Smith, Chairman and CEO, H.D. Smith Holding Company said in a statement: “Our ultimate priority and commitment has been, and continues to be, the needs of our customers and trading partners. Working toward a common goal, H. D. Smith associates have been committed to providing the best customer experience with a focus on honesty and integrity.”