BERGEN BRUNSWIG CONTINUES PUSH INTO FLORIDA WITH PURCHASE OF DAVIS BROS.

Executive Summary

BERGEN BRUNSWIG CONTINUES PUSH INTO FLORIDA WITH PURCHASE OF DAVIS BROS., a regional drug whslr. with one of its three distribution centers located in South Florida, Bergen Brunswig said in an April 29 release announcing the merger agreement. The purchase of Davis Bros. follows on the heels of Bergen's entry into the Florida market last fall via the purchase of the Allen Co., which had annual sales of approximately $70 mil. Denver, Colorado-based Davis Bros. generated annual sales of approximately $110 mil. from its Rocky Mountain and Southeastern operations, Bergen reported. The purchase price for Davis Bros. was not disclosed. Davis Bros, runs its south Florida operations out of a Ft. Lauderdale distribution center. The merger makes a good fit with Bergen's Orlando-based north Florida business acquired by the purchase of the Allen Co. The addition of Davis Bros. "will expand Bergen Brunswig's Southeast marketplace with distribution centers in Florida and Tennessee and it will give our company a greater penetration in the Rocky Mountains with distribution centers in Colorado and Montana," Bergen Chairman and CEO Emil Martini, Jr. said. Commenting on the company's growing presence in Florida, Martini added, "Last autumn Bergen Brunswig entered the Florida market with the acquisition of the Allen Co. and announced its intention to continue a policy of Sun Belt and high-growth area penetration." The Davis Bros. acquisition comes in the wake of Bergen's decision to scuttle its merger agreement with National Intergroup two weeks ago ("The Pink Sheet" April 22, p. 7). Bergen's seventh acquisition in just under five years, Davis Bros. is also the second largest in terms of annual sales volume behind Synergex, whose sales were $330 mil. at the time of merger. According to the release, Bergen expects the deal, which is subject to regulatory approval, to close at the end of May.