After announcing the completion of the Allergan Plc (NYSE:AGN) generic business acquisition, Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is now showing interest in Allergan’s supply chain operations. Teva announced that it would table a $500 million acquisition offer for Allergan’s Anda, the fourth largest drug distributor in the U.S.

Anda handles more than just delivering generic drugs. It is responsible for generic branded and over-the-counter products from more than 300 manufacturers. It distributes them to chain and independent retail pharmacies, hospitals, order pharmacies, clinics, nursing homes and physicians’ offices across the U.S. In 2016, Anda is estimated to generate more than $1 billion in third-party net revenue.

Siggi Olafsson, CEO of Teva’s Global Generic Medicines, noted that this acquisition is a strategic move that will enable them and their customers to improve capabilities and flexibility, given the changes the pharmaceutical industry is currently undergoing. He noted that both Teva’s and Anda’s customers would benefit from their ability as the largest producer of medicines in the world to leverage their size and scale. He also indicated that the distributor would act as a standalone business and report directly to him.

The just concluded acquisition of Allergan’s generic division started back in July 2015. Teva tabled $33.75 billion in cash and close to 100 million shares, which adds up to $40.5 billion. Its current deal for the distribution unit will have to be vetted for antitrust issues before it is completed, which is entirely up to United States bureaucrats. This is expected to happen in the second half of this year.

Teva estimates its combined generic business will bring in approximately $25 billion of free cash flow and about $1.4 billion in tax and operational savings by the end of 2019. The cash flow will help Teva to be in a position of borrowing at a lower interest rate while giving them the ability to pursue acquisitions of attractive branded and pipeline assets.