Arrow Acquires Northeast Pharmacies from Kaiser Permanente
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The Arrow Corp. said it has officially acquired the 14-store pharmacy of Kaiser Permanente's Northeast Division.
It is the third major acquisition in less than 60 days for Arrow. The company said that the transactions have added a total of 48 new stores and $100 million in sales and helped increase system-wide annualized revenues to $250 million in 1999, an increase of 94 percent.
Together with its new FamilyMeds.com online store, they are part of the company's "clicks and mortar" growth strategy for 2000.
The company expects "continued growth in sales and earnings over the next three years through an increase in Internet business and a combination of organic expansion and new store acquisitions," said Ed A. Mercadante, president and chief executive officer of Arrow.
Earlier in December Arrow announced the acquisitions of the 18-store Super Sav-On Drug chain based in Amory, MS and the 16 pharmacies owned by KPC Medical Management, a physician practice management company based in Riverside, CA.
FamilyMeds.com was launched in August with the backing of investors including ABS Capital Partners, Goldman Sachs, Pacific Venture Group, Conning & Company, Northwestern Mutual Life Insurance Company, HLM/CB Fund, Oxford Bioscience Partners and International Capital Partners.
The company has established relationships with TheSeniorNetwork.com, Complexions Rx, Homecare America and BioTherapies Inc. to offer online consumers a combination of products and expert advice.