AmeriSource Walker Drug purchase augmenting Southeast presence.
This article was originally published in The Tan Sheet
Executive Summary
AMERISOURCE STRENGTHENS SOUTHEASTERN PRESENCE WITH WALKER DRUG PURCHASE, announced on Jan. 27. AmeriSource Health Corp. is buying privately held Pelham, Ala.-based Walker Drug for an undisclosed cash amount. Walker has distribution facilities in Knoxville, Tenn. and Ripley, W.Va., as well as at its headquarters.
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AMERISOURCE STRENGTHENS SOUTHEASTERN PRESENCE WITH WALKER DRUG PURCHASE, announced on Jan. 27. AmeriSource Health Corp. is buying privately held Pelham, Ala.-based Walker Drug for an undisclosed cash amount. Walker has distribution facilities in Knoxville, Tenn. and Ripley, W.Va., as well as at its headquarters. Walker will add about 14% to AmeriSource's sales volume. The Alabama distributor reports $800 mil. in annual revenues to AmeriSource's $5.6 bil. Projected combined revenues for fiscal 1997 are in excess of $7 bil. The deal, which is expected to close by March, is predicted to be accretive to earnings "once synergies are realized over the next 18 months," Malvern, Penn.-based AmeriSource said. Some distribution facilities may be closed as consolidation progresses, but Walker's 200,000 sq. ft. flagship facility in Pelham will remain operational, the company said. Walker management will remain with the company for at least a year. Walker said it is "extremely excited about the new programs and information systems we will be able to offer our customers as part of AmeriSource, as well as the growth opportunities this combination will provide for our company and associates." Walker and AmeriSource will blend their value-added programs for retail as part of the integration. AmeriSource noted that Walker's sales mix complements existing business. Walker's sales are 20% hospital, 15% chain pharmacy and 65% independent pharmacy. AmeriSource's sales are more heavily weighted toward the institutional market. |