Cardinal Health acquires Chinese drug distributor for $470 million

US healthcare giant Cardinal Health Inc announced that the company has acquired leading privately held Chinese drug distributor Zuellig Pharma China, also known as Yong Yu, for $470 million, expanding into one of the world's fastest growing healthcare markets.

Under the terms, Cardinal Health assumes approximately $60 million in net debt, and the balance $410 million paid in cash from Cardinal Health funds held overseas.

Cardinal Health chairman George Barrett said: "The acquisition of Yong Yu follows an extensive evaluation of opportunities to drive growth in targeted geographies outside of North America where we believe our core capabilities would add value. ''China is an extraordinary market of enormous potential. We are proud to be able to participate in the ongoing evolution of the country's health care system and we are confident that Yong Yu will provide the ideal platform from which to grow our portfolio in China,'' Barrett highlighted.

The acquisition of Yong Yu places Cardinal Health in a strong footing to drive long-term growth in China. The country's pharmaceutical distribution market is expected to grow 20 per cent annually through 2014 to become the world's second-largest drug market after the US by 2015.

Dublin, Ohio-based Cardinal Health is a $99-billion healthcare services giant, which ranks 17 in the Fortune 500 list. Its businesses helps pharmacies, hospitals, ambulatory surgery centres, and physician offices focus on patient care while reducing costs, improving efficiency and quality, and increasing profitability.

Cardinal Health employs over 30,000 people worldwide, and provides pharmaceuticals and medical products to more than 60,000 locations daily. The company is also a manufacturer of surgical products including gloves, apparel and fluid management products.