February 14, 2013
Cardinal Health (NYSE: CAH ) today announced plans to purchase AssuraMed, a privately held leading provider of medical supplies by mail with approximately $1 billion in annual revenues. The transaction calls for Cardinal to purchase AssuraMed for either $2.07 billion or $1.94 billion; the exact purchase price will be determined based on the value of existing tax benefits.
According to George Barrett, CEO of Cardinal Health, "The acquisition of this industry leader allows us to serve the growing number of Americans treated in home settings -- particularly those patients recovering from acute episodes and those suffering with chronic diseases."
Cardinal expects the acquisition to be completed by April, which would result in expected accretion of $0.02 to $0.03 per share in fiscal 2013, rising to $0.18 a share by 2014. The deal will be funded by $1.3 billion in new debt and approximately $700 million in cash.
Shareholders of AssuraMed have already approved the deal, though the transaction is dependent on standard closing conditions and regulatory approvals.