AmerisourceBergen wins World Courier auction - The Deal Pipeline (SAMPLE CONTENT: NEED AN ID?)
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AmerisourceBergen wins World Courier auction

by Lou Whiteman  |  Published March 6, 2012 at 1:17 PM
AmerisourceBergen-wins-World-Courier-auction.jpgDrug distribution company AmerisourceBergen Corp. said Tuesday, March 6, it would acquire World Courier Group Inc. for $520 million in cash, winning an auction for the privately held company that reportedly also attracted interest from large logistics companies and private equity firms.

Stamford, Conn.-based World Courier transports materials used in clinical trials of drugs to locations in 52 countries. The company is expected to generate sales of about $500 million in 2012.

Valley Forge, Pa.-based AmerisourceBergen, which generated Ebitda of $1.37 billion on sales of $80.69 billion in calendar 2011, said the deal creates a new operating segment inside the company.

"The addition of World Courier's unique capabilities and expertise to our existing commercialization services further strengthens our offerings to global pharmaceutical manufacturers, and provides an established platform for the introduction of our specialty services outside North America," AmerisourceBergen CEO Steven H. Collis said in a statement.

World Courier hired Citibank NA to run an auction last summer, but the bids were complicated by the desire of company founder and majority shareholder James Berger to preserve employee benefits.

According to reports logistics companies FedEx Corp. and United Parcel Service Inc., along with private equity firms Centerbridge Partners LP of New York and Chicago's GTCR LLC, were interested in bidding for the company.

Marken Ltd., World Carrier's primary competitor, has been private equity-owned since Apax Partners Worldwide LLP bought it in December 2009 for €975 million ($1.6 billion).

World Carrier CEO Wayne B. Heyland is expected to remain in his position after the transaction closes.

AmerisourceBergen said the deal, which it hopes to close by June 30, is expected to be neutral to its fiscal 2012 results, and contribute between 6 cents and 10 cents per share in fiscal 2013.
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Tags: AmerisourceBergen Corp. | Apax Partners Worldwide LLP | Centerbridge Partners LP | Citibank NA | FedEx Corp. | GTCR LLC | James Berger | Marken Ltd. | Steven H. Collis | United Parcel Service Inc. | Wayne B. Heyland | World Courier Group Inc.

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