Clayton, Dubilier & Rice and GS Capital Exit AssuraMed
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Clayton, Dubilier & Rice and GS Capital Exit AssuraMed

Cardinal Health today announced plans to acquire AssuraMed, a provider of direct-to-home medical supplies and a portfolio company of Clayton, Dubilier & Rice and GS Capital Partners, for $2.1 billion.  The transaction is expected to close by early April 2013.

Cardinal Health has obtained a commitment letter from BofA Merrill Lynch for a new $1.3 billion senior unsecured bridge term loan in connection with the planned acquisition.

AssuraMed, previously known as HGI Holding, is a mail-order, direct-to-consumer provider of disposable medical products to chronic disease patients. AssuraMed operates through its Edgepark Medical Supplies and Independence Medical divisions, offering its large and fragmented customer base more than 30,000 products addressing a diverse set of chronic disease market segments including ostomy, diabetes, urological, enteral, incontinence and wound care.  AssuraMed has annual sales of approximately $1 billion.  The company operates 12 distribution centers and is based in Twinsburg, OH (www.assuramed.com).

“AssuraMed is a natural extension of the Cardinal Health businesses and of our mission to be essential to care. The acquisition of this industry leader allows us to serve the growing number of Americans treated in home settings – particularly those patients recovering from acute episodes and those suffering with chronic diseases. This is a platform opportunity for Cardinal Health products and services which will be increasingly important as the delivery of care migrates to more cost-effective settings,” said George Barrett, chairman and chief executive officer of Cardinal Health.

Cardinal Health is a $108 billion health care services company that improves the cost-effectiveness of health care. Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is also a manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. The company supports the diagnostic industry by supplying medical products to clinical laboratories and operating the nation’s largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. The company is based in Dublin, OH (www.cardinalhealth.com).

Cardinal Health was advised by BofA Merrill Lynch and Wachtell Lipton Rosen and Katz. Clayton, Dubilier, & Rice and GS Capital Partners were advised by J.P. Morgan, Goldman, Sachs & Co., and Debevoise & Plimpton.

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-14-13

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