Cardinal Health To Buy The Harvard Drug Group For $1.115 Billion

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Cardinal Health Inc. said Friday it has agreed to buy privately-held generics company The Harvard Drug Group in a deal valued at $1.115 billion. The health care provider said it expects the deal to boost fiscal 2016 earnings by more than 15 cents a share, lifting its outlook to $4.75 to $5.05. The current FactSet consensus is for 2016 EPS of $4.89. The deal will expand Cardinal Health's generic distribution business and expand its telesales capabilities, add to its line of over-the-counter drugs and expand its offering to hospital systems. The Harvard Drug Group had 2014 revenue of about $450 million, has 450 employees and two distribution centers. Cardinal Health shares were not yet active in premarket trade, but have gained 8.5% in the year so far, while the S&P 500 has gained 1.8%.

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