Health care services company Cardinal Health (NYSE: CAH) said Thursday it will acquire Kinray, a pharmaceutical distributor serving the New York metropolitan area, for $1.3 billion in an all-cash transaction.
Ohio-based Cardinal said the deal will allow it to expand its retail independent pharmacy customer base by 40% to approximately 7,000 customers, broadening its footprint in the northeastern US. The company estimates accretion in fiscal 2012 of at least $0.12 in adjusted earnings per share from continuing operations, it said.
"Adding Kinray to the Cardinal Health Pharmaceutical Segment portfolio will enable us to build on our increasing presence in community pharmacy and accelerate our growth in this important channel," said chairman and CEO of Cardinal Health, George Barrett.
With annual sales in excess of $3.5 billion, Kinray currently distributes both branded and generic pharmaceuticals to more than 2,000 retail independent pharmacies.
After the deal closes, Kinray customers will be able to tap into a number of service offerings from Cardinal Health, including tools that help improve the back office efficiency of retail pharmacies, including inventory management, reimbursement services and local store marketing programs.
The transaction, which is subject to regulatory approvals, is expected to close by year-end or early in 2011.
Cardinal Health provides pharmaceuticals and medical products to more than 60,000 locations each day. The company has rallied nearly 5% on Thursday, trading at $36.16 as of 10:48am EST.