Originally Published MPMN
Originally Published MPMN June 2004
Cardinal Health to Acquire Alaris Medical Systems
|Alaris manufactures SmartSite needle-free valves that comprise only three parts for a streamlined design.|
Cardinal Health, (Dublin, OH; www.cardinal.com)
a provider of products and services supporting the healthcare industry, has agreed to acquire intravenous safety products maker Alaris Medical Systems Inc. The transaction is valued at approximately $2 billion, including the assumption of outstanding debt.
With complementary operations, production lines, distribution networks, and geographic presence, the acquisition will help Cardinal to broaden integrated product and service offerings. In 2003, Alaris launched 19 new products and expects to launch at least 20 more this year. The same hospital and provider customers that use Cardinal's products use these highly automated proprietary systems.
"Alaris has an excellent reputation in the acute-care marketplace and will further expand Cardinal Health's product and service offerings to this very strategic market," says Robert D. Walter, chairman and CEO of Cardinal Health. "The company is a terrific fit with Cardinal Health and we see a significant opportunity for marketing, sales, and operational synergies in the combined company."
"The market for the IV medication safety products we pioneered is vast and growing worldwide," says David L. Schlotterbeck, president and chief executive officer of Alaris Medical Systems. "Our senior management and employee teams are looking forward to the important role we will play as part of Cardinal Health."
Upon completion of the merger, Alaris will become a wholly owned subsidiary of Cardinal Health. The agreement has been unanimously approved by both companies' boards of directors. The transaction is expected to be completed in Cardinal Health's fourth quarter of its fiscal year, ending June 30, 2004.
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