D&K acquisition a good fit for McKesson

Chain Drug Review, July 25, 2005

SAN FRANCISCO -- McKesson Corp. has signed a definitive agreement to acquire D&K Healthcare Resources Inc. (D&K)

Under the agreement, Spirit Acquisition Corp., a wholly owned subsidiary of McKesson, will commence a tender offer for all outstanding D&K shares for $14.50 in cash per share. In addition, McKesson will assume D&K's outstanding debt.

The acquisition is expected to close during the third calendar quarter of 2005, when D&K will become part of McKesson's domestic pharmaceutical business. "The anticipated addition of D&K demonstrates McKesson's commitment to its core pharmaceutical business and to the independent segment," says Paul Julian, McKesson's executive vice president and group president.

D&K is a natural fit for McKesson in terms of geographic presence, business model and customer approach, opines Julian. "With its intimate customer relationships and strong regional presence, D&K will help complement McKesson's current pharmaceutical distribution footprint," he says. "The combination of McKesson's and D&K's capabilities will help position both companies' customers to become stronger."

As part of the Health Mart franchise and under the ValuRite affiliation program, McKesson offers a wide array of products and services developed specifically to help independent pharmacies and small chains manage their businesses and compete.

"We're excited about becoming part of McKesson because both companies share a strong commitment to customer relationships and are focused on providing good value to the independent pharmacies that D&K and McKesson have served for generations," says J. Hord Armstrong, D&K's chairman and chief executive officer.