Bergen-Brunswig Completes Purchase

Bergen Brunswig Corp., the third-largest U.S. drug wholesaler, on Monday completed its purchase of PharMerica Inc. for $526.6 million in stock to expand its sales to nursing homes.

Orange-based Bergen said it will issue 25 million shares, exchanging 0.275 of a share for every PharMerica share, or $526.6 million. It will also assume $580 million of PharMerica’s debt.

Bergen acquired Tampa, Fla.-based PharMerica, which has annual revenue of $1.2 billion, as part of a strategy to tap the elderly consumer market, which has been growing faster than the U.S. population as a whole. The acquisition gives Bergen 168 pharmacy departments in long-term care facilities.

Bergen also said it increased its line of credit to $1 billion from $400 million.

Bergen’s shares rose 25 cents to $21.13, while PharMerica rose 19 cents to $5.75.