Summary
AmerisourceBergen Corporation (now Cencora, Inc.) announced the completion of the divestiture of its Canadian pharmaceutical distribution business, AmerisourceBergen Canada Corporation (ABCC), to Kohl & Frisch Limited. This strategic move signals a potential refocusing of the company's operations. Investors should note that the company recognized an estimated loss on sale and impairment charges of $161.7 million in the quarter ended March 31, 2013, related to this transaction. These figures are preliminary and subject to post-closing purchase price adjustments expected to be finalized by the quarter ending September 30, 2013. The financial impact of the divested business and the associated charges are being reported under discontinued operations. While the core pharmaceutical distribution business in Canada has been sold, AmerisourceBergen will continue to operate its Canadian specialty business. This divestiture could lead to a more streamlined operational structure and potentially improve future financial performance by shedding a less strategic asset.
Key Highlights
- 1Completion of divestiture of Canadian pharmaceutical distribution business (AmerisourceBergen Canada Corporation - ABCC).
- 2Buyer is Kohl & Frisch Limited, a Canadian-owned national full-line distributor.
- 3AmerisourceBergen will retain its Canadian specialty business.
- 4Company recorded an estimated $161.7 million loss on sale and impairment charges as of the quarter ended March 31, 2013.
- 5Losses and charges are reported under discontinued operations.
- 6Post-closing purchase price adjustments are expected by the quarter ending September 30, 2013.
- 7The news release dated June 3, 2013, containing these details is filed as an exhibit.