Cardinal Health, a medical device manufacturer based in Dublin, Ohio, announced that it will purchase AssuraMed, a medical supplies company, for $2 billion. In January of this year, AssuraMed purchased Invacare's medical supply business.

According to a press release by the company, Cardinal Health will finance the new deal with cash and an estimated $1.3 billion in debt from Merrill Lynch and Bank of America. The company expects to close the deal in April later this year.

George Barret is the CEO of Cardinal Health. In prepared remarks, he said, "AssuraMed is a natural extension of the Cardinal Health businesses and of our mission to be essential to care. 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.”

In 2012, AssuraMed had total sales of approximately $1 billion. This figure includes sales from Invacare Supply Group. In an FDA-mandated fire sale, AssuraMed was able to snatch up Invacare Supply Group for $151 million.

In total, the acquisition is expected to accrete 2-3 cents to Cardinal’s adjusted earnings per share for the current fiscal year. In fiscal 2014, the acquisition is expected to accrete at least 18 cents to the company’s adjusted earnings per share.

References

www.cardinal.com/us/en/media