McQueary Brothers Drug sells to McKesson

The sale is pending customary closing conditions and regulatory review and should close in the second quarter, according to a McKesson news release.

McQueary Brothers is a family-owned operation, founded in 1924, that distributes pharmaceutical, health and beauty products to more than 400 pharmacies in seven states. A call to McQueary Brothers’ 4727 E. Kearney St. location was not answered.

“Our company wasn’t built for the purpose of being sold,” McQueary Brothers co-owner David McQueary said in a separate news release. “It’s been a difficult decision, but recent consolidations in distribution by major pharmaceutical companies would make it difficult to continue to provide the best customer service in the years to come. We believe that becoming part of McKesson is in the best long-term interests of our customers.”

Nearly $21 million of the sale price will be shared with McQueary employees and stakeholders, according to the release. Employees will receive discretionary bonuses based on their history with the company.

The company will be integrated into McKesson’s U.S. Pharmaceutical business. San Francisco-based McKesson (NYSE: MCK) currently ranks 18th on the Fortune 500.