) recently announced that it has inked a definitive agreement to
sell its contract packaging unit, AndersonBrecon, to a
conglomerate of an investor group led by Frazier Healthcare VI,
L.P for approximately $308 million in cash.
The conglomerate includes affiliates of Greenspring
Associates, QIC Global Private Equity and Thomas McNerney &
Partners and has been formed solely for the acquisition of
The results of AndersonBrecon are reported as discontinued
operations. Consequently, the sale of this business
therefore will not impact AmerisourceBergen's guidance for fiscal
We note that AmerisourceBergen has been streamlining its
portfolio in recent times. The company reportedly sold its
Canadian pharmaceutical distribution business, AmerisourceBergen
Canada Corporation (ABCC) to Kohl & Frisch Limited for
approximately $80 million - $100 million. AmerisourceBergen will
however retain its specialty business unit in Canada.
Following the announcement to sell its Canadian Pharmaceutical
Distribution Business on Mar 28, 2013, AmerisourceBergen revised
its guidance for 2013.
AmerisourceBergen now expects revenues in 2013 to grow by
roughly 8% to 10% compared to the previous guidance of 8% - 11%
AmerisourceBergen increased its earnings guidance for fiscal
2013 to $3.04 - $3.14 from the earlier projected range of $2.96 -
We believe the company is well positioned for growth given the
strong performance of its generics business. In Mar 2013, the
company struck a 10-year deal with
) which is expected to add approximately $2 billion to top line
in fiscal 2013.
We note that Walgreens chose AmerisourceBergen over peer
) with whom it already had a pharmaceutical distribution contract
but decided not to renew the same.
AmerisourceBergen carries a Zacks Rank #3 (Hold). Right now,
CVS Caremark Corporation
) looks well placed with a Zacks Rank #2 (Buy).
AMERISOURCEBRGN (ABC): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
CVS CAREMARK CP (CVS): Free Stock Analysis
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