VALLEY FORGE, Pa. — AmerisourceBergen Corp. plans to purchase pharmaceutical distributor H.D. Smith for $815 million in cash.
The companies said that the transaction, pending regulatory review and other closing conditions, is expected to close in early 2018.
Springfield, Ill.-based H.D. Smith, the nation’s largest private wholesaler, also operates CompleteCare Pharmacy, Smith Medical Partners, Triplefin and Valley Wholesale Drug.
However, the company said Triplefin, a pharmaceutical brand support provider, as well as the Arete Pharmacy Network, a pharmacy services administrative organization, aren’t included in the sale to AmerisourceBergen. Arete is a joint venture of H.D. Smith and American Associated Pharmacies.
AmerisourceBergen said the deal will help the company expand in a number of key areas including creating strategic scale, strengthening support to community pharmacy and driving long-term, durable value.
“The acquisition of H.D. Smith, a best-in-class private distributor with facilities across the country and a diversified customer base, strengthens our core business and expands and enhances our strategic scale in U.S. pharmaceutical distribution,” said Steve Collis, chairman, president and chief executive officer of AmerisourceBergen.
“This acquisition also builds upon our foundation and meaningfully expands our support for independent community pharmacies,” remarked Collis. “We remain committed to building our business to meet the evolving needs of our customers, driving long-term value for the health care system and delivering compelling returns for our shareholders. Importantly, we are united in our responsibility to create healthier futures.”
Since 1954, H.D. Smith has built a reputation for excellence and customer-focused health care distribution. With 10 distribution centers nationwide, H.D. Smith provides full-line distribution of branded, generic and specialty drugs, as well as related services and solutions for manufacturers and health care providers. Its customers include retail pharmacies, specialty pharmacies, long-term care facilities, institutional/hospital systems and independent physicians and clinics.
“Our ultimate priority and commitment has been, and continues to be, the needs of our customers and trading partners,” stated Dale Smith, chairman and CEO of H.D. Smith Holding Co. “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. We remain proud of our contributions to improve health care across the country, and we are honored to have supported the success of community health care providers and our manufacturer partners.”
Robert Mauch, group president of pharmaceutical distribution and strategic global sourcing at AmerisourceBergen, noted that the addition of H.D. Smith will bolster its services for independent community pharmacies. AmerisourceBergen runs the Good Neighbor Pharmacy independent pharmacy network.
“The established legacy of H.D. Smith in serving community pharmacies is strongly aligned with and complements the services AmerisourceBergen provides through Good Neighbor Pharmacy and Elevate Provider Network,” Mauch commented.