AmerisourceBergen buys H.D. Smith

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Wednesday, November 22, 2017

VALLEY FORGE, Pa., and SPRINGFIELD, Ill. – AmerisourceBergen will purchase H.D. Smith for $815 million in cash, the two companies have announced.

H.D. Smith is among the largest wholesalers in the country, providing a full line of brand name, generic and specialty drugs from 10 distribution centers across the U.S.

“The acquisition of H. D. Smith strengthens our core business and expands and enhances our strategic scale in U.S. pharmaceutical distribution,” said Steven Collis, chairman, president and CEO of AmerisourceBergen, a provider of pharmaceutical products that generates more than $150 billion in annual revenues.

H. D. Smith subsidiaries Triplefin, a pharmaceutical brand support provider, and Arete Pharmacy Network, a pharmacy services administrative organization, are not part of the acquisition.

AmerisourceBergen plans to fund the acquisition through the issuance of new long-term debt.

The acquisition is expected to be slightly accretive to AmerisourceBergen’s adjusted diluted earnings per share in fiscal year 2018, and be about $0.15 accretive to adjusted EPS in fiscal year 2021.

For fiscal year 2018, AmerisourceBergen now expects revenue growth to be in the range of 8% to 11%, adjusted operating income growth to be in the range of 4% to 7%, and operating growth income for its Pharmaceutical Distribution Services segment to be in the range of 4% to 7%.

The acquisition is subject to regulatory review and other closing conditions, and is expected to close in early calendar 2018.