AmerisourceBergen Buys Minority Stake In Brazilian Pharmaceutical Wholesaler

(RTTNews) - Pharmaceutical products distributor AmerisourceBergen Corp (ABC) said Monday it has agreed to acquire a minority stake in Profarma Distribuidora de Produtos Farmacêuticos S.A., a pharmaceutical wholesaler in Brazil.

Also, AmerisourceBergen and Profarma will establish a joint venture for specialty distribution and services. AmerisourceBergen expects to invest a total of about $100 million, and the deal is expected to close in the June quarter of 2014.

AmerisourceBergen does not expect the deal to have a meaningful impact to its adjusted earnings per share from continuing operations for fiscal 2014.

"We are very excited to partner with Profarma as we continue to expand our reach into growing international markets," said Steven Collis, chief executive officer of AmerisourceBergen.

"With its long-term macroeconomic growth outlook, favorable demographics, and increasing access to healthcare services and specialty pharmaceuticals, the Brazilian market affords us a tremendous opportunity to expand our international offerings."

AmerisourceBergen will purchase up to a 19.9 percent minority stake by offering R$22.50 per share for shares offered in a primary offering by Profarma.

The specialty distribution joint venture will include Profarma's existing specialty businesses and an equity investment from AmerisourceBergen, and each company will own a 50 percent stake in the joint venture.