DUBLIN, Ohio, Nov. 14, 2017 /PRNewswire/ -- Cardinal
Health (NYSE: CAH) today announced that it has signed a definitive
agreement to sell its Cardinal Health China business to Shanghai
Pharmaceuticals Holding Co., Ltd. ("Shanghai Pharma") for
$1.2 billion. The transaction is
expected to close by the end of Cardinal Health's fiscal year,
subject to closing conditions and regulatory clearances.
The sale includes Cardinal Health's pharmaceutical and medical
products distribution business in China. Cardinal Health expects that employees,
infrastructure and various systems and processes that support this
business will move to Shanghai Pharma upon closing of the
transaction. The divestiture does not include Cardinal Health's
remaining businesses in China,
including Cordis, its recently acquired Patient Recovery business,
its medical sourcing team or other functions.
"It has been an honor to serve the people of China through our distribution business for
the past seven years," said George
Barrett, chairman and CEO of Cardinal Health. "We recognize
that significant scale is required to be a market leader in
China and with that in mind, we
are delighted to announce that Shanghai Pharma has agreed to
purchase our distribution business in China. We are very
proud of the work that our colleagues have done and their
accomplishments have allowed us to build a business that is now
poised for further growth under its new owners. On behalf of
all of us at Cardinal Health, I want to thank the team for their
continued commitment, hard work and dedication to our customers and
the patients they serve."
Mr. Zhou Jun, chairman of
Shanghai Pharma, said, "Amid the national healthcare reform, the
acquisition of the Cardinal Health China business will further
strengthen our leadership in the distribution and retail pharmacy
network, and expedite our transformation to become a modern global
healthcare provider. This will also facilitate the growth of
our pharmaceutical manufacturing business, enabling us to play a
significant role in the Government's 'Healthy China'
initiative."
Cardinal Health and Shanghai Pharma look forward to continuing
to collaborate and find new opportunities to explore ways to create
mutual value both in the U.S. and China.
Cardinal Health also announced that Eric
Zwisler, chairman of Cardinal Health China, will retire
effective immediately as part of the sale. Barrett said, "On behalf
of everyone at Cardinal Health, I'd like to thank Eric for many
years of leadership and dedication to our organization. We wish him
well in his future endeavors."
Lazard served as Cardinal Health's financial advisor
on this transaction, and Jones Day and Jun He LLP, served as
its legal advisors.
About Cardinal Health
Cardinal Health, Inc. is a
global, integrated healthcare services and products company,
providing customized solutions for hospitals, healthcare systems,
pharmacies, ambulatory surgery centers, clinical laboratories and
physician offices worldwide. The company provides clinically proven
medical products and pharmaceuticals and cost-effective solutions
that enhance supply chain efficiency from hospital to
home. Cardinal Health connects patients, providers,
payers, pharmacists and manufacturers for integrated care
coordination and better patient management. Because Cardinal
Health helps ensure pharmacists and the consumers they serve
have access to medications they need while working to help prevent
prescription drug diversion, the company and its education partners
created Generation Rx, a national program to help prevent the
misuse of prescription medications. Backed by nearly 100 years of
experience, with approximately 50,000 employees in nearly 60
countries, Cardinal Health ranks #15 on
the Fortune 500. For more information,
visit cardinalhealth.com, follow @CardinalHealth on
Twitter and connect on LinkedIn at linkedin.com/
company/cardinal-health.
About Shanghai Pharmaceuticals Holding Co.,
Ltd.
Shanghai Pharmaceuticals Holding Co., Ltd. ("Shanghai
Pharma" or the "Company") is a leading pharmaceutical group with
business extending across the entire value chain. It is dual listed
on the Shanghai Stock Exchange (Stock code: 601607) and the Hong
Kong Stock Exchange (Stock code: 2607). The Company is engaged in
the research and development, manufacturing, distribution and
retail of pharmaceutical products and innovative healthcare
services. Its revenue and profit sustained growth at CAGR of 15.4%
and 11.7% from 2011 to 2016 reaching RMB120.8 billion and RMB3.8 billion respectively. As Shanghai Pharma
aims to become a leading, globally competitive healthcare group, it
continues to achieve greater economies of scale through both
organic growth and acquisitions, and is well positioned to capture
greater market opportunities through innovation-driven solutions.
Shanghai Pharma is ranked No. 2 among Chinese pharmaceutical
companies according to Forbes 2016 Global 2000. For more
information, please visit http://www.sphchina.com/.
Cautions Concerning Forward-Looking Statements
This
release contains forward-looking statements addressing Cardinal
Health's plans to divest its Cardinal Health China business and
other statements about future expectations, prospects, estimates
and other matters that are dependent upon future events or
developments. These statements may be identified by words such as
"expect," "anticipate," "intend," "plan," "believe," "will,"
"should," "could," "would," "project," "continue," "likely," and
similar expressions, and include statements reflecting future
results, trends or guidance, statements of outlook and expense
accruals. These matters are subject to risks and uncertainties that
could cause actual results to differ materially from those
projected, anticipated or implied. These risks and uncertainties
include: the ability to successfully complete the divestiture on a
timely basis, including receipt of required regulatory approvals
and satisfaction of other closing conditions Cardinal Health is
subject to additional risks and uncertainties described in Cardinal
Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to
those reports. This release reflects management's views as of
November 14, 2017. Except to the
extent required by applicable law, Cardinal Health undertakes no
obligation to update or revise any forward-looking
statement.
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SOURCE Cardinal Health