- Drug distributor and pharmaceutical services firm Cardinal Health (NYSE:CAH) acquires generic drugs distributor The Harvard Drug Group for $1.115B. The transaction enhances Cardinal's generic pharmaceuticals distribution business, expands its telesales operation, broadens its over-the-counter drugs business and adds specialized packaging offerings. Harvard Drug, headquartered in Livonia, MI, has 450 employees, two distribution centers and generated ~$450M in sales last year.
- The deal will add more than $0.15 per share to EPS from continuing ops in fiscal 2016 and more that $0.20 per share in fiscal 2017. The transaction should close by the end of the year.
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Updated Fiscal 2016 Guidance: Non-GAAP EPS: $4.75 - 5.05. New debt of $1.5B will be issued to fund both the Harvard Group and Cordis acquisitions. More details on Cardinal's fiscal 2016 outlook will be provided in its fiscal Q4 earnings call on July 30.
- Cardinal will discuss the deal today at its Dublin Day Investor/Analyst meeting starting at 10:10 am ET.