Cardinal Health Inc. on Friday said it would buy Harvard Drug
Group from Court Square Capital Partners for about $1.12 billion in
a move that will boost Cardinal's generic and over-the-counter
medicine-distribution businesses.
The deal comes as Cardinal, a drug wholesaler that also makes
gloves and surgical apparel, works to expand its portfolio of
medical products as hospitals merge and consolidate.
Cardinal sees the deal boosting its generics-distribution
business, as well as expanding its telesales program and portfolio
of over-the counter drugs.
Harvard Drug Group had revenue of about $450 million in 2014.
Cardinal expects the deal to add more than 15 cents to its core
earnings in its 2016 fiscal year and more thereafter.
For the new fiscal year, Cardinal forecast per-share earnings
from continuing operations of $4.75 to $5.05. Analysts polled by
Thomson Reuters recently forecast $4.89 a share in earnings.
Cardinal is also buying Johnson & Johnson's heart-product
business for about $1.94 billion in cash. That deal is expected to
close near the end of the year.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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