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DUBLIN, Ohio — Cardinal Health Inc. plans to acquire pharmaceutical distributor The Harvard Drug Group (THDG) from private equity firm Court Square Capital Partners for $1.12 billion.
Based in Livonia, Mich., THDG is a distributor of generic drugs, over-the-counter medicines and related products to retail, institutional and alternate care customers. THDG had revenue of about $450 million last year. The acquired company has 450 employees and two distribution facilities.
Cardinal noted that the acquisition, announced earlier this month, expands its generic drug distribution business, telesales programs and capabilities, and portfolio of O-T-C products. THDG also brings specialized packaging offerings for hospital systems and other institutions.
“The Harvard Drug Group aligns perfectly with our commitment to provide the most comprehensive line of pharmaceutical products for the broadest range of customers,” stated Cardinal chairman and chief executive officer George Barrett. “This acquisition enhances our ability to support retail and institutional customers and further utilizes Red Oak, our joint venture with CVS Health, to source generics.”
Cardinal expects the transaction to close in the beginning of its 2016 fiscal year, pending regulatory approvals and other customary closing conditions.
The purchase of THDG marks Cardinal’s second acquisition this year. In late May, Cardinal said its $1.94 billion binding offer to acquire Johnson & Johnson’s Cordis, a global manufacturer of cardiology and endovascular devices, was formally accepted. The deal is slated to close in the United States and other key countries in late 2015.
