Wholesaler LBO Time

I can't leave for the weekend without highlighting this news story:

KKR Offers 9.7 Bln Pounds for Alliance Boots

• "Private-equity group Kohlberg Kravis Roberts & Co. and Alliance Boots PLC executive Stefano Pessina said Friday they had made a friendly takeover approach to the health and beauty company for 1,000 pence a share, or about $18.71 billion . . . Alliance Boots was created following the merger of U.K. health and beauty retailer Boots Group PLC and pan-European drugs distributor Alliance UniChem PLC in July."

So, who's next? The good folks at Starshak Winzenburg send me a monthly update on distribution stocks. Here is the enterprise value of the Big 3 US wholesalers according to their March 2007 Distribution News issue:

• AmerisourceBergen (NYSE:ABC) = $9.9B
• Cardinal Health (NYSE:CAH) = $29.2B
• McKesson (NYSE:MCK) = $15.4B

Today's move by KKR may also make you re-consider the last paragraph of my February post Trouble Ahead for Independent Pharmacies. Any takers?