US drug distributor Cardinal Health to buy Harvard Drug Group for $1.12 bn
05 June 2015
Cardinal Health Inc, a Fortune 500 Company and the second-biggest drug distributor in the US, today struck a deal to buy privately-held drug distributor Harvard Drug Group for $1.12 billion in order to boost its generics business.
Cardinal Health will pay Harvard Drug owner Court Square Capital Partners $1.115 billion using existing cash and new debt and expects the transaction to close in the beginning of fiscal year 2016 subject to regulatory approvals.
Harvard Drug is largest US supplier of prescription and OTC medications and related products to retail, institutional and alternate care customers.
The Michigan-based company had revenues of approximately $450 million in 2014. It has 450 employees and two distribution facilities included in the transaction.
Cardinal Health said that the proposed acquisition expands its existing telesales programs and capabilities; broadens the company's portfolio of over-the counter pharmaceutical products; and brings specialised packaging offerings to meet the needs of hospital systems and other institutions.
"The Harvard Drug Group aligns perfectly with our commitment to provide the most comprehensive line of pharmaceutical products for the broadest range of customers," said, George Barrett, chairman and CEO of Cardinal Health.
"This acquisition enhances our ability to support retail and institutional customers and further utilises Red Oak, our joint venture with CVS Health to source generics," he added.
Based in Ohio, Cardinal Health is a $91-billion health care services company serving pharmacies, hospitals, ambulatory surgery centers, clinical laboratories and physicians.
Cardinal Health provides pharmaceuticals and medical products and services to more than 100,000 locations each day and is also the industry-leading direct-to-home medical supplies distributor.
The company is also a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products.
In addition, the company operates the largest network of radiopharmacies in the US that dispense products to aid in the early diagnosis and treatment of disease.