The world's largest pharmaceuticals distributor, AmerisourceBergen (NYSE:ABC), has completed the divestiture of its Canadian distribution business to Kohl & Frisch Limited, the country's only Canadian-owned national full-line pharmaceutical distributor, AmerisourceBergen announced yesterday.
AmerisourceBergen had expected the sale price to be between $80 million and $100 million when it announced the deal at the end of March, though no final tally was provided in yesterday's press release. It recorded estimated losses on sale of the business, as well as other impairment charges, of $161.7 million, the low end of the range it initially gave of $160 million to $180 million. However there could be post-closing price adjustments, which are expected to be finalized during the quarter ending Sept. 30.
The Canadian distribution business represented some 2% of ABC's total revenues. Moving the business to discontinued operations allowed the pharmaceuticals distributor to increase its estimated earnings per share from continuing operations for 2013 from $2.96 to $3.06, to $3.04 to $3.14. It 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.
Headquartered in Valley Forge, Pa., AmerisourceBergen has more than $80 billion in annualized revenue.
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