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Cardinal Health, Inc. (ticker: CAH, exchange: New York Stock Exchange (.N)) News Release -
5/1/06
Cardinal Health To Enhance Offerings for Retail Independent Pharmacies With Proposed Acquisition of the Pharmaceutical Wholesale Distribution Business From The F. Dohmen Co.
DUBLIN, Ohio, May 1, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Cardinal Health, Inc.
(NYSE: CAH), the leading provider of products and services supporting the
health care industry, today announced plans to acquire the pharmaceutical
wholesale distribution business from The F. Dohmen Co. and certain of its
subsidiaries ("F. Dohmen Wholesale"). The F. Dohmen Co. is a privately held
family-owned health care services corporation, headquartered in Germantown,
Wisconsin.
With revenue of approximately $1.7 billion, F. Dohmen Wholesale is the
fifth largest pharmaceutical distributor in the U.S. and serves more than
2,400 independent pharmacy and retail-chain customers in the Upper Midwestern,
Central, Southern and Southeast States. The company has 480 employees and four
distribution centers.
"F. Dohmen Wholesale is a good fit with Cardinal Health as we continue to
build the industry's best global supply chain for pharmacy customers," said
Mark Parrish, president and chief operating officer of Supply Chain Services -
Pharmaceutical at Cardinal Health. "The acquisition will complement our
existing suite of services and enhance our value proposition to retail
pharmacy customers, a very important set of customers for Cardinal Health."
"After careful consideration, we selected Cardinal Health as a partner
that could successfully continue the tradition of excellence that The F.
Dohmen Co. has spent 148 years cultivating," said John Dohmen, chief executive
officer and president of The F. Dohmen Co. "Cardinal Health has crafted its
programs and services with the independent pharmacist in mind and will afford
our customers new tools to support their continued growth and success."
The proposed sale supports The F. Dohmen Co.'s long-term corporate
strategy of focusing on rapidly growing service sectors within health care.
The company remains committed to providing and expanding its array of health
care services through The F. Dohmen Co.'s strong portfolio of remaining
businesses -- RESTAT, JASCORP and DDN Pharmaceutical Logistics.
Independent retail pharmacies represent an $80 billion business in the
U.S., providing a vital service to patients and communities. With this
acquisition, Cardinal Health sees opportunities to grow its business in this
area with a wide range of differentiated product and service solutions.
Cardinal Health and F. Dohmen Wholesale have complementary capabilities and
geographies that will create synergies for the two organizations and help
independent retail pharmacies continue to improve their operations as they do
today with Cardinal Health's private-label products and innovative solutions.
Cardinal Health anticipates that it will complete the acquisition by June
1. Terms of the agreement were not disclosed.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $75
billion, global company serving the health-care industry with a broad
portfolio of products and services. Through its diverse offering, Cardinal
Health delivers integrated health-care solutions that help customers reduce
their costs, improve efficiency and deliver better care to patients. The
company manufactures, packages and distributes pharmaceuticals and medical
supplies, offers a range of clinical services and develops automation products
that improve the management and delivery of supplies and medication for
hospitals, physician offices and pharmacies. Ranked No. 19 on the Fortune
500, Cardinal Health employs more than 55,000 people on six continents. More
information about the company may be found at www.cardinalhealth.com.
SOURCE Cardinal Health, Inc.
Media, Jim Mazzola, 1-614-757-3690, or jim.mazzola@cardinal.com, or Investors, Jason
Strohm, 1-614-757-7542, or jason.strohm@cardinal.com, both of Cardinal Health, Inc.
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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Cardinal Health, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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