Bergen Brunswig Agrees to Acquire Di Giorgio Unit

Bergen Brunswig Corp. said it agreed to acquire Los Angeles Drug Co., a unit of San Francisco-based Di Giorgio Corp., for about $40 million in cash.

Los Angeles Drug, which had 1985 sales of about $160 million, distributes drugs to pharmacies throughout the Southwest from four centers in California: Anaheim, Rosemead, Van Nuys and Hayward.

In addition to its nationwide pharmaceutical distribution business, Orange-based Bergen Brunswig distributes medical and surgical supplies and videocassettes.

Completion of the purchase is expected by June 30, the company said. Final sales price is dependent on Los Angeles Drug’s inventory and accounting at closing.

Through acquisitions and expansion, Bergen Brunswig has maintained an annual growth rate of 25% for five years and expects to continue to expand at that rate. As reported, the company recently filed with the Securities and Exchange Commission for two public offerings that will raise a total of about $60 million.

In addition to food processing, Di Giorgio Corp. makes building materials and develops land. The company said the sale of its drug distribution unit will enable it to strengthen those units.