AmerisourceBergen Corp.,Chesterbrook , Pa. , and Kindred Healthcare, Louisville , Ky. , agreed to spin off their institutional pharmacy businesses into a single, publicly traded company. With annual revenue of $1.9 billion, the new company would be the second-largest institutional pharmacy in the U.S. after Omnicare, Covington , Ky. Combining the two businesses is expected to save $30 million in costs. The transaction is expected to be completed in early 2007, pending regulatory review. Under terms of the deal, each institutional pharmacy division would pay $150 million to its parent company, and shareholders of each parent company would hold an equal stake in the spinoff. Heidrick & Struggles will conduct a national search for chief executive and chief financial officers. Institutional pharmacies dispense medications, distribute drugs to long-term-care facilities and supply medical equipment, among other services. The companies said the deal will free Kindred to focus on its elder-care and post-acute-care businesses, while allowing AmerisourceBergen to concentrate on pharmaceutical distribution and packaging.
Firms plan spinoff of long-term-care pharmacies
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