Cardinal Health 2011 Annual Report Download - page 31

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A
c
q
u
i
s
i
t
i
ons and D
i
vest
i
ture
s
I
n the past five fiscal years, we completed the following three significant acquisitions apart from businesses
spun-o
ff
as part o
f
CareFus
i
on Corporat
i
on (“CareFus
i
on”), as
di
scusse
db
e
l
ow.
Date
(
1
)
C
om
p
an
y
Loca
t
io
n
Li
n
eof
B
usi
n
ess
C
ons
i
derat
i
o
n
(in millions)
J
ul
y
15, 2010 Healthcare Solution
s
Ho
ldi
ng, LLC (“P4
Hea
l
t
h
care”
)
Ellicott Cit
y
, Mar
y
land Specialt
y
pharmaceutica
l
serv
i
ce
s
$ 598
(
2
)
N
ovem
b
er 29, 2010 Yong Yu S
h
ang
h
a
i
,C
hi
na P
h
armaceut
i
ca
l
an
d
me
di
ca
l
products distributio
n
$
458(3
)
D
ecem
b
er 21, 2010 K
i
nray, Inc.
(“K
i
nray”
)
W
hi
testone, New Yor
k
P
h
armaceut
i
ca
l
, gener
i
c,
h
ea
l
t
h
an
db
eauty, an
dh
ome
health care
p
roduct
s
d
i
st
ri
but
i
on
$
1,33
6
(
1) Represents t
h
e
d
ate we
b
ecame t
h
ema
j
or
i
ty s
h
are
h
o
ld
er.
(
2) Includes
$
506 million in cash and
$
92 million for the acquisition date fair value of contingent consideration to be paid
f
or the ac
q
uisition.
(
3) Includes the assumption of approximatel
y
$57 million in debt.
We also completed several smaller acquisitions durin
g
the last five fiscal
y
ears, includin
g
purchasin
g
B
orschow Hos
p
ital & Medical Su
pp
lies, Inc. in fiscal 2009
.
D
urin
g
the past five fiscal
y
ears, we also completed several divestitures, includin
g
sellin
g
our former
Pharmaceutical Technologies and Services segment, other than certain generic-focused businesses, fo
r
a
pproximately
$
3.2 billion in cash during fiscal 2007 and selling our United Kingdom-based Martindale
in
j
ectable manufacturin
g
business in fiscal 2010. In addition, effective Au
g
ust 31, 2009, we separated ou
r
clinical and medical products businesses through distribution to our shareholders of 81 percent of the then
o
utstan
di
ng common stoc
k
o
f
CareFus
i
on (t
h
e “Sp
i
n-O
ff
”). Dur
i
ng
fi
sca
l
2010, we
di
spose
d
o
f
10.9 m
illi
o
n
shares of CareFusion common stock and durin
g
fiscal 2011, we disposed of the remainin
g
30.
5
million shares
.
VIASYS Healthcare Inc. and Enturia Inc., two significant acquisitions in the last five years, were spun-off as part
of C
areFus
i
on.
C
ustomers
O
ur lar
g
est customers, Wal
g
reen Co. (“Wal
g
reens”) and CVS Caremark Corporation (“CVS”), accounted
f
or approximately 23 percent and 22 percent, respectively, of our revenue for fiscal 2011. The aggregate of ou
r
f
ive largest customers, including Walgreens and CVS, accounted for approximately 59 percent of our revenue for
f
iscal 2011
.
We
h
ave agreements w
i
t
h
group purc
h
as
i
ng organ
i
zat
i
ons (“GPOs”) t
h
at act as agents to negot
i
ate ven
d
or
contracts on behalf of their members. Our two lar
g
est GPO relationships in terms of member revenue are wit
h
Novation, LLC, and Premier Purchasing Partners, L.P. Arrangements with these two GPOs accounted fo
r
a
pprox
i
mate
l
y 14 percent o
f
our revenue
f
or
fi
sca
l
2011
.
S
upplier
s
We rel
y
on man
y
different suppliers. Products obtained from our five lar
g
est suppliers accounted for an
a
ggregate of approximately 22 percent of our revenue during fiscal 2011, but no single supplier’s products
a
ccounted for more than 5 percent of that revenue. Overall, we believe our relationships with our suppliers ar
e
g
ood.
5