Cardinal Health acquires AssuraMed
DUBLIN, Ohio — Cardinal Health on Thursday announced plans to acquire privately held AssuraMed, a provider of medical supplies to patients in the home, for $2.1 billion.
"AssuraMed is a natural extension of the Cardinal Health businesses and of our mission to be essential to care," stated George Barrett, Cardinal chairman and CEO. "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," he said. "This acquisition further aligns us with key trends including demographic shifts and increased consumerism."
After the transaction is complete, Cardinal Health will supply the home healthcare channel with product lines including ostomy, diabetes, insulin therapy, urological, wound care and incontinence. The company also expects to use this acquisition as a platform to begin offering a variety of its current product offerings in the direct-to-home channel.
With annual sales in calendar year 2012 of approximately $1 billion, which includes the sales of the recently acquired Invacare Supply Group, AssuraMed currently serves more than 1 million patients nationally with more than 30,000 products. The company operates through two separate businesses, Independence Medical and Edgepark Medical Supplies.
In addition to broadening Cardinal Heath’s reach into the home, AssuraMed’s expertise in products for specific disease categories and small parcel logistics will significantly enhance Cardinal Health’s ability to service customers across the broad ambulatory care channel, including care sites such as physician offices and in support of home health agencies, Cardinal Health noted. This will also allow Cardinal Health to provide a solution for integrated delivery network, retail pharmacy and medical equipment provider customers, who are currently delivering services to the home.
The transaction is expected to close by early April 2013.
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