AmerisourceBergen Corp. plans to buy closely held PharMEDium Healthcare Holdings Inc. for about $2.58 billion to expand as a supplier of compounded sterile preparations.
The purchase of the business from Clayton, Dubilier & Rice is targeted for completion by the end of December, and will add 22 cents to 26 cents to adjusted net earnings per share in fiscal 2016, AmerisourceBergen said in a statement.
PharMEDium makes about 2,000 products for 3,000 hospital customers, and the deal will increase AmerisourceBergen’s drug offerings, which is the biggest part of the Chesterbrook, Pennsylvania-based distributor’s business.
“The acquisition of PharMEDium strengthens our core business and meaningfully expands our innovative service offerings for health systems,” AmerisourceBergen Chief Executive Officer Steven Collis said in the statement.
The deal should close by the end of this year, AmerisourceBergen said, and will save about $30 million in costs by fiscal 2018.
Clayton Dubilier and other PharMEDium investors will earn about a 400 percent profit from the sale, according to a person with knowledge of the matter, who asked not to be identified because the information is private.
The New York-based private-equity firm led a group that invested $328 million of equity in PharMEDium in January 2014. Anthony Feldman, a Clayton Dubilier spokesman at Broadgate Consultants, declined to comment on the firm’s profit.
Morgan Stanley was AmerisourceBergen’s financial adviser, and Cravath, Swaine & Moore LLP was legal adviser. JPMorgan Chase & Co. and Credit Suisse Group AG was financial adviser for PharMEDium, and Debevoise & Plimpton LLP and K&L Gates LLP were legal advisers.