D&K Healthcare to use revolver borrowings for Walsh acquisition

By Sara Rosenberg

New York, Oct. 22 - D&K Healthcare Resources Inc. plans to borrow funds under its existing revolver to help finance the acquisition of Walsh HealthCare Solutions Inc. for a purchase price of $99 million in cash.

The purchase price includes the repayment of all Walsh bank debt and is subject to adjustment based on the net working capital at closing.

D&K expects the acquisition to be immediately accretive to earnings per share with a modest earnings impact in fiscal 2004 and a significant earnings impact thereafter as integration activities take place. The transaction is expected to close by Dec. 31, 2003, according to a news release.

"Walsh HealthCare's culture, geographic reach, and customer base fits nicely with D&K's strategy of strengthening and growing our core distribution business," said J. Hord Armstrong, III, chairman and chief executive officer, in the release. "The D&K and Walsh combination will deepen our capabilities in existing markets and expand our market reach into new territory."

D&K is a St. Louis wholesale distributor of branded and generic pharmaceuticals and over-the-counter health and beauty aid products.

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