Alan Brochstein, CFA
Aug. 25, 2015, 12:58 PM
- Cardinal Health (CAH +3.3%) agrees to acquire 71% of privately-held NaviHealth for ~$290M, with plans to acquire the rest of the business from founders and investors over the next four years.
- Tennessee-based NaviHealth is a software and analytics company that helps health systems and insurers better manage the care of patients after discharge to keep them from returning to the hospital.
- CAH expects the acquisition to be neutral to FY 2016 non-GAAP EPS from continuing operations since it is a partial period, and slightly accretive to results beginning in FY 2017, the first full year following the deal's close.
Jun. 5, 2015, 7:30 AM
- 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.
- 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.
Mar. 9, 2015, 3:34 PM
- Privately-held Intelligent Hospital Systems (IH Systems) acquires AmerisourceBergen Technology Group (ABTG) for an undisclosed sum. The combined companies will operate under the name ARxIUM.
- The new organization will be the most integrated pharmacy technology firm in the industry. Top products include IH Systems' RIVA technology, the only fully automated IV compounding system on the market, and ABTG's workflow and scheduling software.
- ARxIUM will operate out of Winnipeg, Manitoba and Buffalo Grove, IL.
- Related tickers: (ABC +1.3%)(MCK +0.5%)(CAH +1.2%)
Feb. 23, 2015, 4:18 PM
- It appears that Johnson & Johnson (NYSE:JNJ) may have found a buyer for its underperforming Cordis business, something it's been seeking since August. Cardinal Health (NYSE:CAH) is rumored to be the front-runner for the medical device company.
- Cordis is the second largest unit within J&J, but it was the worst performing last year with a 3.5% decline in sales despite being the pioneer of drug-coated stents and the former market leader. The company was unable to maintain its leadership due to formidable competition and downward price pressure from insurers and hospitals.
- The company expects Cordis to fetch $1.5B - 2.0B.
Feb. 20, 2015, 5:56 PM
- Bloomberg reports Johnson & Johnson (NYSE:JNJ) is exploring the sale of its Cordis medical device unit to Cardinal Health (NYSE:CAH) for as much as $2B.
- The WSJ reported last August J&J is seeking a buyer for Cordis, whose products include stents, guidewires, and catheters, and that it could get $1.5B-$2B for the business.
- CAH +1.5% AH to $88.34.
Apr. 2, 2014, 5:35 PM
- Cardinal Health (CAH) agrees to acquire privately held AccessClosure, a maker and distributor of extravascular closure devices in the U.S., for $320M.
- CAH expects the deal to have minimal impact on non-GAAP earnings in FY 2014 and be slightly accretive to non-GAAP earnings in FY 2015.
- AccessClosure's annual sales exceed $80M.
Jun. 6, 2013, 8:44 AM
Omnicare's (OCR) recent adoption of a Change in Control Plan (8-K) has Credit Suisse thinking the company could be a takeout candidate as "such action has signaled potential outside interest" in the past. While the move is "probably a routine corporate governance action," improved Long-Term Care performance and swift Specialty growth make the company a decent buyout candidate for the likes of McKesson (MCK) and Cardinal Health (CAH), analyst Glen Santangelo says.| Jun. 6, 2013, 8:44 AM
Feb. 14, 2013, 8:50 AM
More on Cardinal Health (CAH +1.8%) acquiring AssuraMed: the deal will allow Cardinal Health to "serve the growing number of Americans treated in (the) home." Calls the deal a "platform opportunity" for its products and services. AssuraMed earned 2012 revenues of $1B, serving over 1M patients with more than 30,000 products. (PR)| Feb. 14, 2013, 8:50 AM
Feb. 14, 2013, 8:08 AM
Cardinal Health (CAH) agrees to acquire closely-held direct-to-home medical supplies provider AssuraMed for $2.07B. The deal will be financed with $1.3B in new senior unsecured notes and cash. CAH says the deal would add $0.02-$0.03/share to FY 2013 adjusted earnings if the deal closes in early April, and at least $0.18/share in FY 2014. CAH +1.2% premarket.| Feb. 14, 2013, 8:08 AM