BERGEN BRUNSWIG WHSLE. DRUG BUSINESS GENERATES $1.33 BIL. SALES
BERGEN BRUNSWIG WHSLE. DRUG BUSINESS GENERATES $1.33 BIL. SALES in fiscal 1984 (ended Aug. 31) not including sales from the firm's two drug whslr. acquisitions in September, Bergen said in its recently released annual report. The annual report notes that Bergen Brunswig's whsle. drug sales increased 17% in fiscal 1984 and accounted for 78% of the firm's total sales -- down from 80% in FY 1983. Operating earnings from the drug div. were up 14% to $47.4 mil., the report adds. Bergen Brunswig's two recent drug whsle. acquisitions, Allen Co. and Synergex with combined sales of $400 mil., put the firm well over the $2 bil. mark in terms of overall FY 1984 sales and add nearly $310 mil. in sales to Bergen's drug div. Following the pending merger of Bergen Brunswig with Natl. Intergroup (formerly Natl. Steel), the drug div. will represent roughly one-third ($1.33 bil.) of the newly formed Bergen Natl.'s revenues of nearly $4 bil. based on FY 1984 performances ("The Pink Sheet" Oct. 8, p. 8). If the Synergex acquisition is completed, the drug div. will represent roughly 40% ($1.64 bil.) of Bergen Natl.'s business. However, Bergen Brunswig's planned acquisition of Synergex may be threatened due to resistance to the merger from the Justice Dept. In a joint release on Nov. 13, Bergen and Synergex reported that Justice had filed a request with the two companies seeking further information on the proposed acquisition. "The effect of the request is to extend the waiting period during which the parties may not effect the acquisition for 20 days from the date Synergex and Bergen Brunswig fully respond to the division's request," the release explains. Both whslrs. said they intend to respond "as soon as possible." The transaction is currently scheduled to close on Jan. 2, 1985 but is subject to the expiration of the Hart-Scott-Rodino waiting period; to approval by Synergex shareholders; and "to certain other closing conditions," the release notes. While waiting for Justice's final word on the Synergex acquisition, Bergen can take some solace in the performance of its Commtron consumer electronics distribution business. Purchased in 1982, Commtron moved ahead of Bergen's med/surgical div. in fiscal 1984 and is now the whslr.'s second largest business in terms of sales. Commtron sales in fiscal 1984 rose 72% to $210.4 mil., while operating earnings jumped 60% to $6.3 mil. The FY 1984 sales level represents more than a threefold increase in sales in the two years since Commtron was acquired by Bergen.
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