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Cardinal Health to buy AssuraMed for about $2 B

Source : AP
Last Updated: Thu, Feb 14, 2013 14:00 hrs

Cardinal Health Inc. will spend about $2 billion to acquire the medical supplier AssuraMed to extend its reach to patients receiving care at home.

The Dublin, Ohio, company said Thursday that AssuraMed serves more than a million patients and generated sales of about $1 billion in 2012. It said the privately held Twinsburg, Ohio, company is a natural extension of its businesses and also will help it serve ambulatory care locations like doctor's offices.

AssuraMed operates through two separate businesses, Independence Medical and Edgepark Medical Supplies.

Cardinal Health Inc. will pay $2.07 billion for AssuraMed, or $1.94 billion not counting tax benefits it will receive from the deal. It will pay for the acquisition using $1.3 billion in new senior unsecured notes and $770 million in cash. The company said it has received a commitment letter from BofA Merrill Lynch for the loan.

Cardinal expects the deal to close in April.

Company shares climbed 81 cents to $46.25 per share in premarket trading after Cardinal announced the deal.



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