AmerisourceBergen to spend $2.5 billion buying animal health product supplier MWI Veterinary

MarketsAssociated Press

Pharmaceutical distributor AmerisourceBergen is spending about $2.5 billion to expand its reach into veterinary medicine with the purchase of MWI Veterinary Supply.

AmerisourceBergen Corp. says it will pay $190 in cash for each share of MWI, a premium of 8 percent to the closing price of MWI shares on Friday, the last day before the deal was announced. The companies expect to close the deal early this year.

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MWI Veterinary Supply Inc. sells animal health products in the United States and United Kingdom.

AmerisourceBergen says the deal will add about 8 cents per share to its fiscal 2015 adjusted earnings. It expects to finance the purchase with cash and long-term debt.

Shares of both companies started climbing in early morning trading.