Conshohocken’s AmerisourceBergen is continuing its international expansion with the acquisition of Walgreens Boots Alliance’s overseas drug distribution business, writes Joseph N. DiStefano for The Philadelphia Inquirer.
The Fortune-10 drug wholesaler with nearly $180B in annual sales will pay $6.5 billion for Walgreens’ Alliance Healthcare and the accompanying packaging, shipping, generic drug, and personal-care brands.
With this acquisition, AmerisourceBergen has now expanded into 13 countries, including England and France, as well as the fast-growing Turkey and Egypt markets.
The announcement resulted in a rise in the company’s stock price of almost 9 percent, pushing it over $100 a share for the first time in five years as it closed at $106.17 on Wednesday.
The deal comes just two months after the drug wholesaler agreed to put aside $6.6 billion – enough to wipe out the company’s profit for last year – to settle accusations that it helped drugmakers and rogue doctors flood the country with opioid painkillers.
However, when questioned by analysts during a conference call with investors on the prudence of such acquisition at this time, AmerisourceBergen chief executive Steven Collis offered reassurances that it was the right move for the company.
“We are pursuing this acquisition from a position of strength,” he said.
Read more about AmerisourceBergen at The Philadelphia Inquirer here.