AmerisourceBergen Divests Canadian Pharmaceutical Distribution Business

Thu Mar 28, 2013 7:00am EDT

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VALLEY FORGE, Pa.--(Business Wire)--
AmerisourceBergen Corporation (NYSE: ABC) today announced that it has signed a
definitive agreement to sell its Canadian pharmaceutical distribution business,
AmerisourceBergen Canada Corporation (ABCC), to Kohl & Frisch Limited, a
Canadian-owned national full-line distributor. The transaction is expected to
close in the third quarter of fiscal 2013, and is subject to customary closing
conditions, including certain regulatory approvals. AmerisourceBergen will
retain its Canadian specialty business. 

The estimated sale price is expected to be between $80 million and $100 million,
of which approximately half will be financed by AmerisourceBergen. As a result
of the agreement, the Company expects to record an estimated loss on sale and
other impairment charges of between $160 million and $180 million when it
reports its quarterly results for the March quarter of fiscal 2013. This
estimated loss on sale, in addition to ABCC`s operating losses, will be reported
within discontinued operations. ABCC represented approximately 2 percent of
AmerisourceBergen`s total revenues. 

Due to the impact of the sale, AmerisourceBergen has revised its financial
performance expectations for fiscal year 2013. The Company now expects revenue
growth in the range of 8 to 10 percent and it has increased its estimated
earnings per share from continuing operations for fiscal 2013 from a range of
$2.96 to $3.06 to a range of $3.04 to $3.14. The revised earnings per share
range does not include the impact of significant one-time expenses anticipated
as a result of the previously disclosed new strategic long-term relationship
with Walgreen Co. and Alliance Boots, GmbH, including a LIFO expense due to an
anticipated inventory build and recurring non-cash expenses relating to the
equity warrants issued in connection with the new relationship. The Company
continues to expect free cash flow in the range of $100 million to $200 million,
and to repurchase approximately $400 million of common stock in fiscal 2013. 

About AmerisourceBergen

AmerisourceBergen is one of the world's largest pharmaceutical services
companies serving the United States, Canada and selected global markets.
Servicing both healthcare providers and pharmaceutical manufacturers in the
pharmaceutical supply channel, the Company provides drug distribution and
related services designed to reduce costs and improve patient outcomes.
AmerisourceBergen's service solutions range from niche premium logistics and
pharmaceutical packaging to reimbursement and pharmaceutical consulting
services. With over $80 billion in annualized revenue, AmerisourceBergen is
headquartered in Valley Forge, PA, and employs approximately 13,000 people.
AmerisourceBergen is ranked #29 on the Fortune 500 list. For more information,
go to www.amerisourcebergen.com. 

Cautionary Note Regarding Forward-Looking Statements

Certain of the statements contained in this press release are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Words such as "expect,"
"likely," "outlook," "forecast," "would," "could," "should," "can," "will,"
"project," "intend," "plan," "continue," "sustain," "synergy", "on track,"
"believe," "seek," "estimate," "anticipate," "may," "possible," "assume,"
variations of such words and similar expressions are intended to identify such
forward-looking statements. These statements are based on management's current
expectations and are subject to uncertainty and change in circumstances. These
statements are not guarantees of future performance, are based on assumptions
that could prove incorrect or could cause actual results to vary materially from
those indicated. Among the factors that could cause actual results to differ
materially from those projected, anticipated or implied are the following:
changes in pharmaceutical market growth rates; the loss of one or more key
customer or supplier relationships; changes in customer mix; customer
delinquencies, defaults or insolvencies; supplier defaults or insolvencies;
changes in pharmaceutical manufacturers' pricing and distribution policies or
practices; adverse resolution of any contract or other dispute with customers or
suppliers; federal and state government enforcement initiatives to detect and
prevent suspicious orders of controlled substances and the diversion of
controlled substances; qui tam litigation for alleged violations of fraud and
abuse laws and regulations and/or any other laws and regulations governing the
marketing, sale, purchase, and/or dispensing of pharmaceutical products or
services and any related litigation, including shareholder derivative lawsuits;
changes in federal and state legislation or regulatory action affecting
pharmaceutical product pricing or reimbursement policies, including under
Medicaid and Medicare; changes in regulatory or clinical medical guidelines
and/or labeling for the pharmaceutical products we distribute; price inflation
in branded pharmaceuticals and price deflation in generics; greater or less than
anticipated benefit from launches of the generic versions of previously patented
pharmaceutical products; significant breakdown or interruption of our
information technology systems; our inability to realize the anticipated
benefits of the implementation of an enterprise resource planning (ERP) system;
interest rate and foreign currency exchange rate fluctuations; risks associated
with international business operations, including non-compliance with the U.S.
Foreign Corrupt Practices Act, anti-bribery laws and economic sanctions and
import laws and regulations; economic, business, competitive and/or regulatory
developments outside of the United States; risks associated with the strategic,
long-term relationship among Walgreen Co., Alliance Boots GmbH, and
AmerisourceBergen, including the failure to obtain the required U.S. and foreign
antitrust regulatory approvals for the equity investments by Walgreens and
Alliance Boots in AmerisourceBergen, the occurrence of any event, change or
other circumstance that could give rise to the termination, cross-termination or
modification of any of the transaction documents among the parties (including,
among others, the distribution agreement or the generics agreement), an impact
on our earnings per share resulting from the issuance of the warrants, an
inability to realize anticipated benefits (including benefits resulting from
participation in the Walgreens Boots Alliance Development GmbH joint venture),
the disruption of AmerisourceBergen`s cash flow and ability to return value to
its stockholders in accordance with its past practices, disruption of or changes
in vendor, payer and customer relationships and terms, and the reduction of
AmerisourceBergen`s operational, strategic or financial flexibility; the
acquisition of businesses that do not perform as we expect or that are difficult
for us to integrate or control; our inability to successfully complete any other
transaction that we may wish to pursue from time to time; changes in tax laws or
legislative initiatives that could adversely affect our tax positions and/or our
tax liabilities or adverse resolution of challenges to our tax positions;
increased costs of maintaining, or reductions in our ability to maintain,
adequate liquidity and financing sources; volatility and deterioration of the
capital and credit markets; and other economic, business, competitive, legal,
tax, regulatory and/or operational factors affecting our business generally.
Certain additional factors that management believes could cause actual outcomes
and results to differ materially from those described in forward-looking
statements are set forth (i) in Item 1A (Risk Factors) in the Company's Annual
Report on Form 10-K for the fiscal year ended September 30, 2012 and elsewhere
in that report and (ii) in other reports filed by the Company pursuant to the
Securities Exchange Act of 1934. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date they are
made. Except to the extent required by law, AmerisourceBergen does not
undertake, and expressly disclaims, any duty or obligation to publicly update
any forward-looking statement after the date of this report, whether as a result
of new information, future events, changes in assumptions or otherwise.

AmerisourceBergen Corporation
Barbara Brungess, 610-727-7199
bbrungess@amerisourcebergen.com

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