BERGEN BRUNSWIG BACK IN DRUG WHSLR. ACQUISITION MARKET, CEO MARTINI TELLS ANALYSTS
Bergen Brunswig is expected to re-enter the drug whslr. acquisition market with a "meaningful" purchase by the end of 1984, the firm's Chairman Emil Martini told a recent analysts meeting in NYC. "As far as drug whsle. acquisitions are concerned, I think that you saw acquisition activity generally at a reduced level in the last year," Martini said in response to an analyst's question. He added: "I would be very surprised if we didn't announce a meaningful acquisition before the end of this calendar year." Martini did point out that Bergen acquired one whslr. last year, San Antonio-based Stanley Drug. However, he noted: "We thought that it was in our best interest to stay out of the acquisition market at that period of time because we thought that some of the values that were being placed on certain operations were . . . not appropriate." Martini explained that the price multiples placed on the initial offering prices of whslrs. going public last year had the effect of pushing up price tags for privately held whsle. houses. Commenting on the firm's expansion plans into new customer areas, Martini said that Bergen Brunswig has identified the emerging alternate site health care delivery area as a high priority business segment in the next few years. "I think the most significant base of business, where we have virtually zero sales [and] that will be a major segment in the next 12 to 24 months, is HMOs [health maintenance organizations]," Martini declared. "That is a segment that we are aggressively pursuing and we are beginning to do some significant pieces of business in that area." He added that Bergen is also looking into surgicenters and emergicenters. In the home health care area, Martini said that Bergen's drug div. "expects to announce to customers in October or November what we consider to be the best program for our customers to capitalize on the home health care field."
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