Cardinal Health to Acquire AssuraMed for $2.07B
Dublin, OH-based Cardinal Health on Thursday announced plans to acquire privately held AssuraMed, a direct-to-home provider of medical supplies, for $2.07 billion, or $1.94 billion, net of the present value of tax benefits. The deal, expected to be finalized in early April, will be financed with a combination of $1.3 billion in new senior unsecured notes and the remainder in cash.
"AssuraMed is a natural extension of the Cardinal Health businesses and of our mission to be essential to care," George Barrett, chairman/CEO of Cardinal Health, said in prepared remarks.
"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. This is a platform opportunity for Cardinal Health products and services which will be increasingly important as the delivery of care migrates to more cost-effective settings. It has been a central component of our strategy to help enable the healthcare system by serving patients throughout the continuum of care. This acquisition further aligns us with key trends including demographic shifts and increased consumerism."
With annual sales in calendar year 2012 of $1 billion, which includes the sales of the recently acquired Invacare Supply Group, AssuraMed serves more than 1 million patients nationally with more than 30,000 products. The company operates through two separate businesses, Independence Medical and Edgepark Medical Supplies.