ALCO HEALTH SERVICES' ACQUISITION OF KENTUCKY-BASED L.S. DUBOIS
ALCO HEALTH SERVICES' ACQUISITION OF KENTUCKY-BASED L.S. DUBOIS is the company's third drug whslr. purchase since Alco's public stock offering in August 1985. In an April 28 press release, Alco Health Services said that "an agreement-in-principle has been reached to acquire L.S. Dubois Son & Co. of Paducah, Kentucky for an undisclosed amount of cash and stock." Alco acquired Tiffin, Ohio-based Meyer & Co. in November in a cash swap worth approximately $16 mil. and, in August, purchased Valdosta Drug, based in Valdosta, Ga. The public stock offering gave Alco Health Services approximately $70 mil. for use in acquisitions. When completed, the acquisition of L. S. Dubois will put Alco Health Services' annual sales volume over $1.3 bil., the whslr. reported. Alco Health Services now has 12 subsidiary companies serving customers in 24 midwestern, eastern and southeastern states from 25 distribution centers. A distributor of pharmaceuticals, health and beauty aids, home health care products and sundries, L. S. Dubois "has annual sales in excess of $100 mil." out of its single distribution center in Paducah, Alco noted. L. S. Dubois will "continue to operate from Paducah under its existing management team" led by president Louis Haas, Alco said. L. S. Dubois, based in Western Kentucky across the Ohio River from Illinois, appears to make a very good geographic fit for Alco Health Services. Alco's businesses in the Midwest include Kauffman Latimer in Ohio, West Virginia, and Kentucky (Louisville); Meyer in Ohio; Duff Bros. and Smith-Higgins in Tennessee; Shawnee Evans in Kansas; and Brown Drug in Iowa, South Dakota, and Minnesota. The acquisition of L. S. Dubois is subject to the execution of a definitive agreement, compliance with appropriate government regulations and final approval by the boards of directors of both companies, Alco noted.
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