Bergen Brunswig signs definitive agreement to acquire Colonial Healthcare Supply Co.

ORANGE, Calif.--(HealthWire)--July 7, 1995--Bergen Brunswig Corp. (NYSE:BBC) Friday announced that it has signed a definitive agreement to acquire privately-held Colonial Healthcare Supply Co. in an all cash transaction.

Headquartered in Lake Zurich, Ill. (a suburb of Chicago), Colonial is one of the ten largest full-line distributors of medical and surgical products in the country, serving large teaching hospitals such as Northwestern Memorial and Henry Ford, as well as approximately 1,100 smaller hospitals and nearly 10,000 alternate care providers, including physician practices, ambulatory surgical centers, home health providers, nursing homes and subacute care facilities. Operating out of six distribution centers located in Lake Zurich, Minneapolis, Detroit, Cincinnati, St. Louis and Indianapolis, Colonial offers over 28,000 products from over 800 manufacturers. Revenues for Colonial's year ended December 31, 1994, totaled approximately $180 million.

The transaction, terms of which were not disclosed, is subject to certain conditions, including Hart Scott Rodino compliance and approval of Colonial's shareholders. Certain persons, who are affiliates of Colonial and own 68% of Colonial stock, have agreed to vote their stock in approval of the proposed merger. Management expects that the transaction will be additive to earnings per share. Colonial's principal executives will continue in their management roles in the Midwestern region of Bergen's wholly-owned subsidiary, Durr Medical.

Commenting on the acquisition, Robert E. Martini, chairman and CEO, said, "The Colonial transaction perfectly complements our Durr Medical business and helps to round out our physical presence nationally. Colonial is highly respected in its markets for outstanding people, high service levels, and sophisticated technology and systems. Colonial, like Bergen, has been a pioneer in the use of EDI technology, with over 86% of its orders taken using this technology. Additionally, Colonial is one of the largest stockless distributors in the country, a definite competitive advantage when partnering with today's managed care customers. Colonial together with Durr and its recently acquired Biddle & Crowther Co.(centered in the Northwest) and Southeastern Hospital Supply Co.(centered in the Mid-Atlantic region) create a very formidable enterprise."

"We are looking forward to synergies produced from the combined companies," explained Bennett Welch, president and CEO of Colonial Healthcare Supply Co. "We sought Bergen because the management's operating philosophies most closely fit ours. We were looking for someone who could enhance our competitive position and market share without overlapping our existing territory."

Bergen Brunswig Corp., with annualized revenues in excess of $8.0 billion is the nation's largest supplier of pharmaceuticals to the managed care market and the second largest wholesaler to the retail pharmacy market. Additionally, Bergen is the only pharmaceutical distributor that also supplies medical and surgical products on a national basis. Bergen's specialty wholesaling division, Alternate Site Distributors, furnishes pharmaceuticals and oncology products to clinic and physician accounts.

CONTACT: Bergen Brunswig

Lisa Riordan, 714/385-4079