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Thursday, February 14, 2013

Cardinal Health to purchase medical supplier AssuraMed for $2.07 bln, (NYSE: CAH)

U.S. drug wholesaler Cardinal Health Inc said it plans to acquire AssuraMed, a privately held direct-to-home medical supply distributor, for about $2.07 billion.The acquisition will give Cardinal access to a new segment of the healthcare market that it believes will grow with the implementation of the Affordable Care Act (ACA), or Obamacare, as it is more commonly known.The deal, financed with $1.3 billion in new senior unsecured notes and cash, is expected to close by early April.Cardinal Health said the acquisition would add 2 cents to 3 cents per share to adjusted fiscal 2013 earnings if the deal closes in early April. It would add at least 18 cents per share to adjusted earnings in fiscal 2014.

Cardinal Health, Inc. is a healthcare services company providing products and services that help pharmacies, hospitals, surgery centers, physician offices and other healthcare providers. Shares of CAH traded higher by 1.69% or $0.77/share to $46.21. In the past year, the shares have traded as low as $36.91 and as high as $45.95. On average, 2413350 shares of CAH exchange hands on a given day and today's volume is recorded at 1527915.