DrugMax Inc. Completes the Purchase of Assets from Pharmaceutical Distributor
LARGO, Fla.--(BUSINESS WIRE)--Oct. 24, 2001--DrugMax Inc. (Nasdaq:DMAX) a full-line wholesale distributor of pharmaceuticals, over-the-counter products, health and beauty aids and nutritional supplements, announced that the Company has purchased substantially all the assets of Penner & Welsch Inc., a regional pharmaceutical distributor.
Penner & Welsch Inc., headquartered in the greater New Orleans area, specializes in the distribution of generic pharmaceuticals throughout the Southeastern region. DrugMax will operate the new facility under the name Valley Drug Company South.
"This is a prudent asset purchase within our core business," Bill LaGamba, president and chief operating officer, said. "We view this as a tremendous opportunity to expand our operational capabilities and customer base. In addition, we intend to convert this operation into a full-line wholesaler."
"Currently, our existing full-line operations are servicing the largest marketplace between New York and Chicago," LaGamba said. "With this acquisition, we are now capable of also servicing the largest markets between Atlanta and Houston. We are enthusiastic about the prospects of this new company and our increased presence throughout the Southeastern region."
"This transaction is the best of both worlds for us," Ron Patrick, chief financial officer, said. "We strengthen the foundation of DrugMax without assuming any of Penner & Welsch's liabilities and besides the obvious assets, DrugMax also will benefit from the value of employees with years of experience in the industry as well as established relationships throughout the region." |
