AmerisourceBergen has sold AndersonBrecon for $308m, exiting the contract packaging business in order to concentrate on its core business.
The wholly owned subsidiary is to be incorporated into the company Packaging Coordinators Inc (PCI), created by affiliates of an investor group led by Frazier Healthcare last year when they purchased the US contract packaging arm of Catalent Pharma Solutions .
In a press release, AmerisourceBergen CEO Steven Collis said the sale will allow his company “to focus on its distribution, specialty and manufacturer services businesses,” while the AndersonBrecon would “continue to thrive in the years ahead.”
AndersonBrecon was formed last June as a combination of AmerisourceBergen’s two packaging operations. Between US-based Anderson Packaging (bought in July 2006 ) and UK-based Brecon Pharmaceuticals (bought for $49m in the same year ), the company consisted of twelve facilities which, subject to customary closing conditions, will now be integrated into PCI.
Bill Mitchell, PCI's CEO said “this acquisition is a positive step in PCI's growth strategy” and complements its already established US operations with the “European footprint of AndersonBrecon.” Furthermore, it signals ambition in the contract packaging field for a business that was offloaded last year by Catalent who said the subsidiary had suffered from a rising number of clients insourcing.
This is the second divestment in a week for AmerisourceBergen who announced it was selling its Canadian Distribution Business to Kohl & Frisch, a Canadian-owned national pharmaceutical distribution company.
The Canadian drug distribution service had been the root cause of AmerisourceBergen’s increasing operation expenses, according to CFO Tim Guttman, speaking in January to investors.