Retail News Breaks
AmerisourceBergen wraps up sale of Canadian Rx distribution unit
June 3rd, 2013
VALLEY FORGE, Pa. – AmerisourceBergen Corp. has completed the sale of AmerisourceBergen Canada Corp. (ABCC), its Canadian pharmaceutical distribution business, to Kohl & Frisch Ltd.
AmerisourceBergen said Monday that it recorded an estimated loss on sale and other impairment charges of $161.7 million, which is subject to post-closing purchase price adjustments, for its fiscal 2013 second quarter ended March 31.
The company expects to finalize these adjustments with Kohl & Frisch during the quarter ending Sept. 30. The results of operations of ABCC and the loss on sale and impairment charges are reported in discontinued operations.
The divestiture was announced in late March. AmerisourceBergen said at the time that the estimated sale price for ABCC is expected to be $80 million to $100 million, of which about half will be financed by AmerisourceBergen.
AmerisourceBergen noted that it's retaining its Canadian specialty pharmaceutical business.
Concord, Ontario-based Kohl & Frisch describes itself as Canada's only domestically owned national pharmaceutical distributor.
In mid-May, AmerisourceBergen closed the sale of AndersonBrecon, its contract packaging business, to Frazier Healthcare for $308 million in a deal was announced in early April.
Also last month, Walgreen Co. and Alliance Boots were cleared by regulators to buy an equity stake in AmerisourceBergen as part of their long-term partnership with the distributor.
The regulatory clearances gave joint venture partners Walgreens and Alliance Boots the green light to exercise their right to purchase up to 7% of the fully diluted equity of AmerisourceBergen in the open market. In addition, Walgreens and Alliance Boots were cleared to exercise equity warrants for 16% in the aggregate of the fully diluted equity of AmerisourceBergen. The warrants will be offered in two tranches exercisable for six-month periods — one starting in March 2016 and the other in March 2017 — and be allocated equally among Walgreens and Alliance Boots.
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