H. D. Smith acquires California drug wholesaler, Valley Wholesale Drug

Valley had $130 million in 2011 revenue

H. D. Smith (Springfield, IL), the No. 4 drug wholesaler in the US (based on annual revenue) and the largest privately held one, has completed the acquisition of Valley Wholesale Drug, a family-run business in Stockton, CA, serving 600 independent pharmacies in that state and a few in Nevada. Valley has a single distribution center in Stockton; H. D. Smith has one in Carson, CA, as well as six other states. Stephen Shoneff, former CEO of Valley, will manage the Valley business. Purchase price was not disclosed.

"The close of the acquisition of Valley Wholesale Drug marks a significant step in our strategy to continue growing our national footprint to serve more independent pharmacists across the country — especially in the critical market of California, and moving forward, into the Pacific Northwest," said Dale Smith, chairman, H. D. Smith. "We will continue to focus on exceptional service to our core customers – the Retail Independent Pharmacy – and we will be well-served to execute on this objective under the leadership of Stephen Shoneff, who has managed the Valley Wholesale Drug business successfully during the last 26 years."

US drug wholesaling has been consolidating steadily over the past two decades, with the Big Three—AmerisourceBergen, Cardinal Health and McKesson—roughly splitting some 90% of the industry. In the 2010-2011 HDMA Factbook, H. D. Smith was listed as having 2009 revenue of $3.34 billion.