With an eye toward expanding its access to independent pharmacies in the northeast, Cardinal Health says it will acquire Kinray, Inc., a pharmaceutical distributor serving the New York City area, in an all-cash deal valued at $1.3 billion.
"Adding Kinray to the Cardinal Health Pharmaceutical Segment portfolio will enable us to build on our increasing presence in community pharmacy and accelerate our growth in this important channel," says George Barrett, chairman/CEO of Cardinal Health. "Kinray has a long-standing service tradition with its customers. We intend to continue that tradition, utilizing its customer expertise and Whitestone (NY) distribution facility, while creating additional value for its customers through branded pharmaceutical programs, inventory and pharmacy management tools and Cardinal Health's extensive generic drug program."
Kinray has annual sales in excess of $3.5 billion and serves more than 2,000 retail independent pharmacy customers as a distributor of branded and generic pharmaceuticals. Kinray primarily serves the New York metropolitan area and will establish a stronger platform for Cardinal Health in the northeast. The addition of Kinray will increase Cardinal Health's retail independent pharmacy base by 40% to about 7,000 customers. The deal is expected to be finalized by the end of the year.
"The combination of Kinray's distribution model with the benefits of the value-added services offered by Cardinal Health will benefit our customers, making them even more efficient and successful in caring for their patients," said Stewart Rahr, president/CEO of Kinray.