Cardinal Health has announced its plans to purchase The Harvard Drug Group a distributor of generic pharmaceuticals, over-the-counter medications and products to retail, institutional and alternate care customers.
Assuming this timing, Cardinal Health expects accretion in non-GAAP diluted earnings per share (EPS) from continuing operations of greater than $0.15 per share in fiscal 2016, net of the $0.03 to $0.04 per share of interest expense for the related debt financing. Cardinal Health expects accretion in non-GAAP diluted EPS of more than $0.20 in fiscal 2017 and for accretion to be increasingly greater thereafter.
The acquisition expands Cardinal Health’s existing telesales programs and will also improve Cardinal Health’s company’s portfolio of over-the counter pharmaceutical products. It will also provide better packaging offerings which will meet the needs of hospital systems and other institutions.
Court Square Capital Partners owns The Harvard Drug Group; Cardinal Health will pay Court Square $1.115 billion in existing cash and new debt. The transaction is expected to close in the beginning of fiscal year 2016 and will be subject to regulatory approvals and other customary closing conditions.
George Barrett, chairman and chief executive officer of Cardinal Health mentioned in a statement: “The Harvard Drug Group aligns perfectly with our commitment to provide the most comprehensive line of pharmaceutical products for the broadest range of customers.” He also said: “This acquisition enhances our ability to support retail and institutional customers and further utilizes Red Oak, our joint venture with CVS Health to source generics.”
About Cardinal Health
Cardinal Health, Inc. is a Fortune 500 health care services company which has headquarters in Dublin, Ohio, USA. The company is known for the distribution of pharmaceuticals and medical products which is present in more than 60,000 locations. Cardinal Health is also one of the top manufacturers of medical and surgical products such as gloves, surgical apparel and fluid management products. On December 10, 2013, it was announced that Cardinal Health would team up with CVS Caremark, which would form the largest generic drug sourcing operation in the United States. The venture was named Red Oak Sourcing and started operations in July 2014. Cardinal Health stock market evolution: http://finance.yahoo.com/q?s=CAH
About George S. Barrett
George Barrett, chairman and chief executive officer of Cardinal Health. Mr. Barrett is one of the top business executives in the pharmaceutical industry. He is seen as “one of the leaders and leading thinkers” in the pharmaceutical industry. Mr. Barrett received his Bachelor of Arts degree from Brown University and his M.B.A. from New York University. He also holds an honorary Doctor of Humane Letters degree from Long Island University’s Arnold & Marie Schwartz College of Pharmacy and Health Sciences.
About The Harvard Drug Group
The Harvard Drug Group is a corporation with a wide variety of brands under its vast portfolio. It started as an independent family business. Over nearly half a century and several acquisitions later, the family business transformed into one of the country’s largest suppliers of prescription and OTC medications and related products. The Harvard Drug Group offers affordable and safe branded, generic and OTC products to healthcare providers. The company’s mission is “to drive value for pharmaceutical partners and consumers.” Buying from The Harvard Drug Group is a confident buying decision that its customers have made through the years. The company maintains rigorous quality standards to ensure the integrity of their products, from procurement through packaging and distribution. The Harvard Drug Group supplier qualification and management process ensures products meet the highest quality standards for customers. The Harvard Drug Group stock market evolution: http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4217472
About Court Square Capital Partners
Court Square Capital Partners is a private equity firm with a business that focuses on leveraged buyout transactions. Court Square was originally a captive private equity firm within Citigroup known as Citigroup Venture Capital Equity Partners. Its investment professionals have invested over $4.5 billion in more than 150 transactions, which have returned $14 billion to date.
The company currently manages approximately $6 billion of investor commitments. It focuses on several industry sectors such as business services, health care, industrials, media and publishing, and technology and telecommunications. Court Square has headquarters in New York City and was from Citigroup in 2006. The name of the company was from the location of Citigroup’s offices at One Court Square in Queens, New York. The firm’s predecessor Citicorp Venture Capital Equity Partners traces its roots to 1968 with the founding of Citicorp Venture Capital. In the 1980s, CVC Equity Partners began to focus primarily on leveraged buyout transactions.