Cardinal Health buys AssuraMed for $2.07 billion
DUBLIN, Ohio – One month after it acquired Invacare Supply Group, AssuraMed finds itself on the other end of a deal.
Cardinal Health, which provides wholesale pharmaceuticals and medical supplies, plans to acquire AssuraMed, a home medical supplies distributor, for $2.07 billion, according to a press release. The move comes on the heels of AssuraMed’s January purchase of Invacare Supply Group for $150 million.
“Cardinal Health has a long and successful tradition in providing healthcare solutions to its customers and we know this expertise will enable AssuraMed to move even farther and faster in building out our home care business,” stated Michael Petra, AssuraMed CEO, in the release.
Cardinal’s acquisition of AssuraMed, the parent company of Independence Medical Supply and Edgepark Medical Supplies, will be financed with $1.3 billion in new senior unsecured notes, with the remainder being paid for in cash. The deal is expected to close in early April 2013, according to the release.
The move gives Cardinal a platform to expand its reach into the homecare sector with a product line of supplies for diabetes, insulin therapy, urological, wound care and incontinence.
“It has been a central component of our strategy to help enable the healthcare system by serving patients throughout the continuum of care,” stated George Barrett, chairman and CEO of Cardinal Health, in the release. “This acquisition further aligns us with key trends, including demographic shifts and increased consumerism.
AssuraMed, which had annual sales in calendar year 2012 of approximately $1 billion, currently serves more than 1 million patients nationally. Cardinal hopes to bring additional value to patients by leveraging AssuraMed’s billing expertise and “relationships with commercial and government payers,” the statement said.