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Cardinal Health to acquire home medical wholesaler
February 14th, 2013
DUBLIN, Ohio – Cardinal Health Inc. plans to buy direct-to-home medical supplies distributor AssuraMed for $2.07 billion.
The pharmaceutical wholesaler said Thursday that the acquisition, expected to close by early April, will enable it to better serve the rising population of aging and chronically ill patients as care increasingly moves to the home.
AssuraMed had sales of about $1 billion in 2012, including revenue from the recently acquired Invacare Supply Group, and now serves more than 1 million patients nationwide with more than 30,000 products. AssuraMed operates through two businesses: Independence Medical and Edgepark Medical Supplies.
Cardinal noted that AssuraMed's expertise in products for specific disease states and small-parcel logistics will its ability to serve customers across the ambulatory care channel, including care sites such as doctor's offices and in support of home health care agencies. That also will enable Cardinal to provide a comprehensive solution for integrated delivery network, retail pharmacy and medical equipment provider customers that are currently delivering services to the home.
In addition, AssuraMed will bring more value to those customers through medical billing expertise and relationships with commercial and government payors, Cardinal 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. This is a platform opportunity for Cardinal Health products and services which will be increasingly important as the delivery of care migrates to more cost-effective settings," George Barrett, chairman and chief executive officer of Cardinal Health, said in a statement.
"It has been a central component of our strategy to help enable the health care system by serving patients throughout the continuum of care. This acquisition further aligns us with key trends including demographic shifts and increased consumerism," Barrett added. "AssuraMed has an outstanding management team, a mission closely aligned with ours, and a track record of extraordinary customer service and outstanding financial performance."
Cardinal said that after the transaction is finalized, it will supply the home health care channel with product lines including ostomy, diabetes, insulin therapy, urological, wound care and incontinence. The company added that it also expects to use the acquisition as a platform for offering a variety of its current product offerings in the direct-to-home channel.
"We are very excited about becoming part of Cardinal Health," AssuraMed CEO Michael Petras stated. "Cardinal Health has a long and successful tradition in providing health care 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."