McKesson Corporation has signed a definitive agreement to purchase McQueary Brothers Drug Company, a Springfield, Missouri-based regional distributor of pharmaceutical, health, and beauty products to more than 400 independent and several regional chain pharmacies. The acquisition expands McKesson's distribution footprint in the Midwestern US and continues its momentum in the independent pharmacy segment. The purchase price is approximately $190 million.

The acquisition is expected to close in the second calendar quarter of 2008, subject to customary closing conditions, including regulatory review. After the closing, McQueary Brothers will be integrated into McKesson's US Pharmaceutical business, which is reported in the McKesson Distribution Solutions segment. The acquisition will have no significant impact on McKesson's FY09 earnings and will be modestly accretive to FY10 earnings per fully diluted share.

"The anticipated addition of McQueary Brothers, a private, family-owned company that has been serving independent pharmacy for more than 80 years, reinforces McKesson's ongoing commitment to the independent segment," said Paul Julian, executive vice president and group president, McKesson. "Based on McKesson's 175 year history of helping independent pharmacies manage and grow their businesses while improving their delivery of patient care, McQueary Brothers is a natural fit for McKesson."

McKesson connects independent pharmacies to a broad suite of programmes and services designed to help them manage and grow their businesses. Today, McKesson's fast-growing Health Mart franchise helps independent pharmacies compete locally and nationally by delivering managed care contracting services, marketing and advertising tools, in-store programmes, and operational support. McKesson also offers competitive generics purchasing programme (McKesson OneStop Generics), automation and pharmacy management systems, medication therapy management programmes and front-end merchandising. Additionally, as a leading provider of connectivity solutions, McKesson helps connect payors, manufacturers, consumers, and other key healthcare players together in reimbursement and other patient care services.

"As the country's oldest and largest pharmaceutical wholesaler, McKesson is committed to supporting the expanding needs of independent pharmacy in America, and securing their place in the healthcare system," said John Figueroa, president, McKesson US Pharmaceutical. "The combination of McKesson and McQueary Brothers will allow McKesson to offer our broad portfolio of products and services to hundreds more independent pharmacies in the Midwestern United States."