Healthcare giant Cardinal Health is planning to buy radiopharmacy company Syncor International in a deal worth $1.1 billion. Syncor, of Woodland Hills, CA, plans to divest its Comprehensive Medical Imaging center chain as part of the deal.
Syncor will become a wholly owned subsidiary of Cardinal under the terms of the acquisition. Cardinal shareholders will receive 0.52 shares of Cardinal stock for each Syncor share they own, with Cardinal issuing 14 million shares to complete the deal. Cardinal will also assume $202 million in Syncor debt. The acquisition is slated for completion by the end of this year.
Syncor distributes radiopharmaceuticals from a network of 130 sites in the U.S. and 19 internationally. It had revenues of $775 million in 2001, up 23% compared to the previous year. Cardinal, based in Dublin, OH, has annual revenues of over $40 billion, and provides a wide range of products and services to healthcare facilities, such as pharmaceutical distribution, surgical supplies, and laboratory products.
Syncor claims that Comprehensive Medical Imaging is the third-largest fixed-site imaging center chain in the U.S. CMI has 72 centers in the U.S. and 19 in the rest of the world. The company said earlier this year that it did not plan to expand the CMI network, and has retained investment banking firm Salomon Smith Barney of New York City to assist with the divestiture.
Syncor said it would take a one-time charge of $22 million to $24 million for costs related to the CMI divestiture, as well as other expenses associated with the Cardinal deal.
By AuntMinnie.com staff writersJune 14, 2002
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