Bergen Brunswig Announces Deal to Keep Big Drug Customer
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ORANGE — Bergen Brunswig, the nation’s second-largest drug wholesaler, said Wednesday that it has completed negotiations with a nonprofit Texas hospital chain to keep it as a customer in the wake of a buyout of an Alabama competitor.
In purchasing Durr-Fillauer Medical Inc. of Montgomery, Ala., in September for $470 million, Bergen Brunswig demanded that the smaller company’s two top customers continue to do business with the combined concern.
One of those customers is Volunteer Hospitals of America of Irving, Tex., which controls 886 affiliate hospitals and multi-hospital systems across the country.
Bergen Brunswig said that the deal locking Volunteer Hospitals of America into a five-year distribution agreement will generate $3 billion in sales over the life of the pact. The buyout is expected to generate total yearly revenue of $6 billion.
Before the Durr-Fillauer deal was completed, Bergen Brunswig received assurances that Sun Health Enterprises Inc. of Raleigh, N.C., which operates nursing homes in the Southeast, would continue to buy drugs after the takeover.
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