AmerisourceBergen Corp. (ABC) recently added another name to its already heavy acquisition list following its definitive agreement to purchase World Courier Group, Inc., for $520 million in cash. World Courier is a specialty transportation and logistics provider for the biopharmaceutical industry.
AmerisourceBergen expects the acquisition to close in the third quarter of fiscal 2012 (ending June 30), subject to customary closing conditions. Further, the company expects the transaction to be neutral to its fiscal 2012 earnings, and contribute about 6 – 10 cents to fiscal 2013 earnings.
Following the completion of this acquisition, AmerisourceBergen plans to make World Courier a new operating segment within the company. We note that World Courier’s customized solutions and customer-centric service model will expand AmerisourceBergen’s existing manufacturer services and commercialization support services.
AmerisourceBergen has been pretty active on the acquisition front in order to supplement organic growth. Last year, the company acquired IntrinsiQ and Premier Source in September and CVS Caremark Corporation’s (CVS) subsidiary TheraCom in November.
Premier Source, which has been merged with AmerisourceBergen’s AmerisourceBergen Consulting Services (ABCS) segment, has strengthened the company’s focus on emerging diagnostic, biotech and device manufacturers. Further, following the acquisition of IntrinsiQ, the combination of IntrinsiQ’s software applications and AmerisourceBergen’s ION Solutions’ existing oncology technology platform has enhanced the company’s proprietary data offerings.
Moreover, the acquisition of TheraCom has provided AmerisourceBergen with a wide range of support to pharmaceutical and biotechnology drug manufacturers including consulting and reimbursement services. TheraCom’s services have complemented AmerisourceBergen’s existing services and expanded the group’s pharmacy benefit reimbursement capabilities.
We currently have a Neutral recommendation on the stock, which is supported by a Zacks #3 Rank (Hold rating) in the short-run.
AMERISOURCEBRGN (ABC): Free Stock Analysis Report
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