AmerisourceBergen sells AndersonBrecon drug packaging subsidiary for US$308m
Agrees 10-year relationship with Walgreen and Alliance Boots and divests AmerisourceBergen Canada
AmerisourceBergen is to sell its contract packaging business, AndersonBrecon, for US$308m in cash, to a group created to make the purchase led by Frazier Healthcare.
The deal is expected to close by 30 June, subject to customary conditions.
Frazier Healthcare, a private equity firm with offices in Seattle and Menlo Park, CA, last year bought the US commercial contract pharmaceutical packaging operation of Catalent Pharma Solutions, which now operates as Packaging Coordinators Inc (PCI) and is located in Philadelphia.
AndersonBrecon, formed in June 2012 as a combination of AmerisourceBergen’s two packaging operations, US-based Anderson Packaging and UK-based Brecon Pharmaceuticals, will become part of PCI.
‘We are pleased to merge two stellar players within the pharmaceutical and biotech packaging business and believe that the combined company will deliver industry leading quality and service to our customers and a world-class environment for our employees,’ said Nathan Every, Frazier Healthcare General Partner and PCI board member.
This transaction allows AmerisourceBergen to focus on its distribution, speciality and manufacturer services businesses
‘This transaction will help ensure that AndersonBrecon will continue to thrive in the years ahead, and allows AmerisourceBergen to focus on its distribution, speciality and manufacturer services businesses,’ said Steven Collis, AmerisourceBergen President and Chief Executive.
AmerisourceBergen recently agreed a long-term relationship with Walgreen and Alliance Boots, which will streamline the distribution of pharmaceuticals to Walgreens’ stores and leverage global supply chain efficiencies while improving patient access to affordable pharmaceuticals.
The relationship includes a ten-year comprehensive primary pharmaceutical distribution contract with Walgreens; access to generic drugs and related pharmaceutical products through the Walgreens Boots Alliance Development joint venture; and opportunities to accelerate the growth of its speciality and manufacturer services businesses both in the US and internationally.
Walgreens and Alliance Boots have been granted rights to purchase equity in AmerisourceBergen.
‘This new relationship will significantly strengthen and grow our core business and increase our ability to deliver innovative solutions to our customers, and long-term benefits to all of our stakeholders,’ said Collis.
This new relationship will significantly strengthen and grow our core business
‘Importantly, these agreements not only expand our US business, but also provide opportunities to meaningfully grow our speciality and manufacturer services businesses internationally.’
In addition, AmerisourceBergen has announced the sale of its Canadian pharmaceutical distribution business, AmerisourceBergen Canada Corporation (ABCC), to Kohl & Frisch, a Canadian-owned national distributor for between $80m–$100m, of which AmerisourceBergen will finance approximately half. ABCC accounted for approximately 2% of AmerisourceBergen’s total revenues.
