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Thursday, February 14, 2013

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

Cardinal Health Inc plans to purchase direct-to-home medical supply distributor AssuraMed from private equity group Clayton Dubilier & Rice for about $2.07 billion, the U.S. drug wholesaler said on Thursday.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, which is more commonly known as Obamacare.Cardinal Health plans to finance the deal with $1.3 billion in new senior unsecured notes.The company said the acquisition would add 2 cents to 3 cents per share to fiscal 2013 earnings before special items if the deal closes in early April, as planned. 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 2.09% or $0.9501/share to $46.39. 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 2215632.