VALLEY FORGE, Pa.--(BUSINESS WIRE)--Sept. 10, 2001--AmerisourceBergen Corporation (NYSE:ABC) today announced an
overview of its strategic plan to integrate the operations of
AmeriSource Health Corporation and Bergen Brunswig Corporation.
The Company also provided updated financial guidance for
AmerisourceBergen. The merger of AmeriSource and Bergen Brunswig, two
leading pharmaceutical services companies, was completed on August 29,
2001.
AmerisourceBergen said it expects to achieve $150 million in
annual synergies within three years, with the majority of the savings
occurring in years two and three. The savings are expected to come
from consolidation of distribution centers ($50 million), enhanced
efficiency of distribution facilities ($30 million), procurement ($30
million), administration and information technology ($35 million), and
$5 million in other savings.
The integration strategy has three phases. Upon completion, the
Company expects to have approximately 30 distribution centers, down
from 51 today. Approximately four to six distribution facilities are
expected to be closed in the first year. In addition, four-to-eight
new facilities will be built.
Financial Guidance
AmerisourceBergen said its long-term financial goals are:
-
Revenue growth of at least 15%
-
Earnings before interest and taxes growth of at least 15%
-
Earnings per share growth of at least 20%, before merger and
acquisition costs
-
Return on committed capital of at least 20% in each business
segment
The Company said it expects to incur $10 million to $15 million of
merger-related costs in the September quarter of fiscal 2001.
AmerisourceBergen also said the elimination of goodwill under new
accounting rules adds $0.13 to $0.14 to earnings per share in fiscal
2002.
"This is an exciting time for AmerisourceBergen as we hit the
ground running," said David Yost, President and Chief Executive
Officer. "We see tremendous potential for the new AmerisourceBergen in
terms of providing enhanced services for customers and suppliers. Our
updated financial guidance, including the goal of a 20% increase in
EPS before merger costs, reflects the strategic strength of our
combined company as well as the substantial opportunities for us in
this $160 billion market."
Mr. Yost continued, "Our integration planning is on track. Our
thorough review of the synergy opportunities has also enabled us to
increase our expectations to $150 million in annual synergies by the
end of the third year. The consolidation strategy we are executing
truly brings together the best of both companies, including a regional
organization structure with empowered local management."
Management of AmerisourceBergen will today outline the Company's
strategic direction, integration plans and financial review during a
conference call for investors. The call will be webcast beginning at
12:45 pm Eastern Daylight Time today/
To access the live conference call via telephone:
Dial in: 800-230-1096 from inside the U.S. no access code required
612-332-0636 from outside the U.S. no access code required
To access the live webcast:
Go to the Quarterly Webcasts section on the Investor Relations
page at http://www.amerisourcebergen.net
A replay of the call and webcast will be available from 5:15 pm
September 10, 2001 until 11:59 pm September 17, 2001.
To access the replay via telephone:
Dial in: 800-475-6701 from within the U.S., access code: 602171
320-365-3844 from outside the U.S., access code: 602171
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations
page at http://www.amerisourcebergen.net
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to the
pharmaceutical supply chain. It is the leading distributor of
pharmaceutical products and services to the hospital systems/acute
care market, alternative care facilities, and independent community
pharmacies. The Company is also a leader in the institutional pharmacy
marketplace. With approximately $36 billion in annualized operating
revenues, AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 13,000 people serving over 25,000 customers.
Forward-Looking Statements
This press release may contain certain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Actual results
may vary materially from the expectations contained in the
forward-looking statements. The forward-looking statements herein
include statements addressing future financial and operating results
of AmerisourceBergen and the benefits and other aspects of the merger.
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and Bergen
Brunswig will not be integrated successfully; failure to obtain and
retain expected synergies; and other economic, business, competitive
and/or regulatory factors affecting the business of AmerisourceBergen
generally.
More detailed information about these factors is set forth in
AmeriSource's and Bergen Brunswig's filings with the Securities and
Exchange Commission, including each of their Annual Reports on Form
10-K for fiscal 2000, their most recent quarterly reports on Form
10-Q, and their joint proxy statement-prospectus dated August 1, 2001.
AmerisourceBergen, AmeriSource and Bergen Brunswig are under no
obligation to (and expressly disclaim any such obligation to) update
or alter their forward-looking statements whether as a result of new
information, future events or otherwise.
CONTACT: |
AmerisourceBergen |
---|
|
Michael N. Kilpatric, 610/727-7118 |
---|
|
mkilpatric@amerisource.com |
---|
|
---|
|
---|