Cardinal Health said on Monday it acquired majority stakes in GI Alliance (GIA) and Advanced Diabetes Supply Group (ADSG) for about $3.9 billion in an all cash deal.
The Dublin, Ohio-based drug distributor has acquired a majority stake in GIA for about $2.8 billion, representing 71% ownership, Cardinal said, adding that its purchase of ADSG is valued at about $1.1 billion.
GIA will operate as a platform within Cardinal Health’s Pharmaceutical and Specialty Solutions segment, while ADSG will merge with its at-Home Solutions business, the company said.
The acquisition of GIA will support Cardinal Health of gastroenterology care across its member sites, building upon its previous acquisition of Specialty Networks earlier this year for $1.2 billion in cash to help the drug distributor expand its services in the specialty drug space.
Cardinal said it expects the deals to be accretive to it’s revenue, segment profit growth and profit 12 months after closing the deal.
Source: Reuters.com