ALCO HEALTH SERVICES' PURCHASE OF MEYER & CO. PUTS WHSLR. OVER $1 BIL
ALCO HEALTH SERVICES' PURCHASE OF MEYER & CO. PUTS WHSLR. OVER $1 BIL. mark in total annualized sales, Alco said in a Sept. 26 press release announcing the agreement-in-principle with Meyer & Co. owner Hillman Securities. In return for Tiffin, Ohio-based Meyer, Hillman will receive 1,110,000 shares of Alco Health Services common stock worth approximately $15.5 mil. based on the stock's Sept. 27 closing price of $14 per share. The acquisition is subject to the final approval of the respective boards, execution of a definitive agreement, and the appropriate regulatory filings, Alco noted. A distributor of pharmaceuticals, health and beauty aids, medical and surgical supplies, and home health care products, Meyer & Co. has annual sales "in excess of $100 mil.," Alco reported. The acquisition of Meyer will extend Alco's midwest presence through its Kauffman-Lattimer subsidiary. If the acquisition is finalized, Meyer & Co. will be Alco Health Services' second drug whslr. purchase since its initial stock offering in August, which raised approximately $70 mil. for acquisitions. In late August, Alco announced the purchase of $20 mil. drug whslr. Valdosta Drug, based in Valdosta, Georgia ("The Pink Sheet" Sept. 2, T&G-5). Hillman Securities said it continues to be "enthusiastic about health care distribution and looks forward to participating in the industry through its investment in Alco Health Services." The 1.1 mil. share holding will give Hillman Securities an 8.5% ownership position in Alco Health Services. The issuance of the 1.1 mil. previously unissued shares increases Alco Health Services' total shares outstanding to over 13.1 mil. and dilutes Alco Standard's majority position (7.3 mil. shares) from just over 60% to under 56%.
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