Medical-supply company Cardinal Health plans to pay $2.07 billion to expand its presence in home healthcare with the acquisition of AssuraMed.
Cardinal Health, Dublin, Ohio, said in a news release
that the company would finance the transaction with $1.3 billion in new debt and the remainder in cash. The deal is expected to close by early April, according to the release.
AssuraMed, a privately held company based in Twinsburg, Ohio, had sales of about $1 billion in 2012 and reaches about 1 million patients a year with 30,000 products, according to the release. The figures reflect AssuraMed's January acquisition of medical supplies manufacturer Invacare
AssuraMed operates as two constituent businesses: Edgepark Medical Supplies, which delivers disposable medical products to patients at home, and Independence Medical, a medical-supplies wholesaler.
'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 illnesses,” Cardinal Health Chairman and CEO George Barrett said in the release. “This is a platform opportunity for Cardinal Health products and service which will be increasingly important as the delivery of care migrates to more cost-effective settings.”
Cardinal Health earned $1.1 billion on revenue of $107.6 billion in its fiscal 2012, ended June 30.