McKesson to close McQueary distributor, lay off workers

McKesson Corp., which acquired Springfield-based McQueary Bros. Drug Co. in May, will close its local distribution center on Friday and lay off nearly 100 employees.

The pharmaceutical distribution center, 4727 E. Kearney St., is scheduled to close at the end of business Friday, McKesson spokeswoman Catherine Brew told Springfield Business Journal. The sales force and management team - approximately 15 workers - and a "handful" of other employees have taken other jobs with McKesson, but the remainder of the 111-member staff will be let go, with the option to interview for other positions.

"We're still very much in the process of trying to determine what our open positions are," Brew said. "A lot depends on employees' willingness to relocate in some situations, and trying to match the right opportunities with the right individuals. That will be an ongoing process for a while."

Workers who are not hired for other positions will be given severance packages and employment counseling, Brew said.

San Francisco-based McKesson operates seven other distribution centers in its Midwest division, located in St. Louis; Cape Girardeau; Memphis, Tenn.; Oklahoma City; Omaha, Neb.; La Crosse, Wisc.; and Carol Stream, Ill. Because of the proximity of those locations, McKesson determined the Springfield center would not be needed, according to Brew.

All McQueary customers have been transferred to McKesson. The company served about 400 pharmacies in Missouri, Arkansas, Illinois, Kansas, Oklahoma, Nebraska and Iowa.

McKesson will retain its lease on the 66,000-square-foot facility for a couple of months to tie up loose ends, Brew said. The company also operates Extended Care Solution Group at 1550 E. Republic Road.

McKesson - a Fortune 500 company - acquired McQueary last spring in a $190 million deal. The pharmacy-product distributor was locally owned and operated for 84 years, but the McQueary family sought out a buyer in the face of industry consolidation and increased government regulation.

"We just thought it was going to be tougher for us as an independent to be able to compete," President David McQueary told SBJ in May. "There are pressures all up and down the supply chain, from the manufacturer down to retail for cost cutting. Bigger's the way to be."