Cardinal Health has been given the go-ahead by the European Commission for its acquisition of the UK-based Intercare Group.
The US firm announced its intention to buy Intercare in October for $400 million (€322m) and the assumption of $130 million in debt. The sale is expected to close early next year.
The UK company is a good fit with Cardinal because, like its suitor, it offers both contract manufacturing and distribution services. Cardinal said the acquisition would strengthen its activities in Europe, where Intercare operates 19 facilities, but also add new capabilities in pre-filled syringe production and sterile manufacturing.
At present, less than 10 per cent of Cardinal's business comes from outside the USA, said George Fotiades, president and chief executive of the group's life sciences business, at the time the deal was announced. The company had annual revenues of more than $50 billion last year, dwarfing the $468 million sales at Intercare.
In addition, Intercare will contribute proprietary expertise in oral hormones and other potent dosage forms, as well as the Martindale speciality generics business. But there is not expected to be many opportunities for cost synergies from the acquisition, due largely to the different geographical reach of the two companies.