Cardinal Health plans to buy Harvard Drug Group for $1.12bn

The deal amount will be paid by Cardinal using existing cash and new debt. The acquisition is expected to complete in the beginning of fiscal year 2016 after the receipt of regulatory approvals and satisfying other customary closing conditions.

Cardinal Health chairman and chief executive officer George Barrett said: "The Harvard Drug Group aligns perfectly with our commitment to provide the most comprehensive line of pharmaceutical products for the broadest range of customers.

"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."

This acquisition will not only enhance Cardinal’s generic pharmaceutical distribution business, but will also expand its existing telesales programs and capabilities; broadens portfolio of over-the counter pharmaceutical products.

It is also expected to bring specialized packaging offerings to meet the needs of hospital systems and other institutions. Also included in the transaction are THDG’s 450 employees and two distribution facilities.

Currently owned by Court Square Capital Partners, THDG is a distributor of generic pharmaceuticals, over-the-counter medications and related products to retail, institutional and alternate care customers.

The group had revenues of approximately $450m in 2014.

Image: Cardinal Health headquarters in Dublin, Ohio, US. Photo: courtesy of Cardinal Health.