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H.D. Smith to buy Valley Wholesale Drug
October 16th, 2012
SPRINGFIELD, Ill. – Pharmaceutical wholesaler H.D. Smith plans to acquire regional health care distributor Valley Wholesale Drug.
Terms of the deal, announced late Monday, weren't disclosed. H.D. Smith said the acquisition will expand its customer base in California to more than 1,000 independent pharmacies, about half of the market in the state.
In addition, H.D. Smith said the deal will enable it to extend its reach into the Pacific Northwest, which it described as an underserved region and marketplace for the company.
"Today's announcement serves as an important building block in our national customer service vision to continue our commitment to meeting the needs of independent community pharmacies and serve a growing number of these customers throughout the important state of California," said H.D. Smith chairman and chief executive officer Dale Smith said in a statement. "H.D. Smith will continue to focus on exceptional service to our core customer: the retail independent pharmacy. This acquisition confirms our commitment to assisting this vital link in the chain of the U.S. health system to address consumer health community needs."
With its headquarters and distribution center in Stockton, Calif., Valley Wholesale Drug serves more than 600 independent pharmacy and institutional customers in California, as well as some in Nevada. The company, which had revenue of $130 million in 2011, also has distribution licensing in Washington state.
According to H.D. Smith, following the close of the acquisition, Valley Wholesale Drug customers will benefit from H.D. Smith's broader product portfolio and solutions, including its Third Party Network, a PSAO, that will enable Valley pharmacies to bolster their payor and customer connections.
"Becoming part of the H. D. Smith family of companies aligns two companies with many similarities, including their family founded and owned pedigrees, focus on delivering high-quality products and service value to customers and their service to a similar customer base mix, largely independent pharmacies and institutional accounts," stated Stephen Shoneff, CEO of Valley Wholesale Drug. "We believe this is an outstanding fit for Valley Wholesale Drug and its customers, who seek customer service and support programs that contribute exponentially to the independent pharmacy's profitability, viability and rightful place in today's health care system."
H.D. Smith added that the deal continues its national effort begun well over a decade ago to expand its independent pharmacy and institutional customer base and service offerings. The company said that since 1995 it has acquired regional distribution players or built distribution centers in seven states serving key regions, including Texas, Illinois, California, metropolitan New York, Florida, New England and Kentucky.