ABC divests Canadian distribution arm to Kohl & Frisch

VALLEY FORGE, Pa. — AmerisourceBergen on Thursday announced that it has divested its Canadian pharmaceutical distribution business, AmerisourceBergen Canada Corporation, to Kohl & Frisch Limited, a Canadian-owned national full-line distributor. ABCC represented approximately 2% of AmerisourceBergen’s total revenues.

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 Pennsylvania wholesaler 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. 

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.