TORONTO--(BUSINESS WIRE)--Kohl & Frisch Limited (“K&F”), one of Canada’s largest pharmaceutical distribution companies, announced today that it has signed a definitive agreement to acquire AmerisourceBergen Canada Corporation (“ABCC”), a subsidiary company of AmerisourceBergen Corporation (NYSE: ABC), one of the world’s largest pharmaceutical services company.
“I have long admired AmerisourceBergen as a global leader in the healthcare industry, and so the opportunity to acquire their Canadian distribution business was very exciting,” said Ron Frisch, Kohl & Frisch’s President and Chief Executive Officer. “AmerisourceBergen Canada’s national infrastructure and strong customer relationships are tremendous assets, and we view their business as an ideal complement to our existing operations across Canada.”
K&F, the country’s only Canadian-owned national pharmaceutical distribution company, believes that the transaction will deliver significant operational efficiencies to its existing business, as well as strengthen its position in key regional markets. K&F currently is situated with distribution centres in six provinces across Canada, while ABCC has operations in seven provinces.
The announcement comes days before the institution of the April 1 changes to generic drug pricing across Canadian provinces, which threaten to impose significant financial strain across the pharmaceutical supply chain. In this challenging economic environment, K&F views the acquisition of ABCC as reinforcing its long-standing commitment to serving as a leading full-service partner to Canadian pharmacy.
Under the terms of the agreement, K&F will acquire all ownership interest in ABCC as well as substantially all of its assets. The transaction is expected to close by the end of May 2013 subject to customary closing conditions, including all necessary regulatory approvals.