Cardinal Health 2010 Annual Report Download - page 31

Ac
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 two significant acquisitions, both of which were
transferred to CareFusion as
p
art of the S
p
in-Off.
C
ons
i
derat
i
on Pa
i
d
Date
(
1
)
Com
p
an
y
Location
L
ine of Busines
s
C
as
h
S
toc
k
Option
s
Converted
(
2
)
(
Amounts in millions
)
June 21
,
2007 VIASYS Healthcare Inc.
(“
VIA
S
Y
S”)
Conshohocken
,
Pennsy
l
van
ia
Respirator
y
, neurolo
gy
,
me
di
ca
ldi
sposa
bl
ean
d
ort
h
ope
di
c pro
d
uct
s
$1,526
(
3
)
0.1
M
a
y
12, 2008 Enturia Inc. (“Enturia”) Leawood, Kansas Infection prevention
pro
d
uct
s
$ 490
(
4
)
0.0
(1) Represents the date we became the ma
j
orit
y
shareholder.
(2) As a resu
l
to
f
t
h
e acqu
i
s
i
t
i
on, t
h
e outstan
di
ng stoc
k
opt
i
ons o
f
t
h
e acqu
i
re
d
company were converte
di
nto opt
i
ons t
o
purc
h
ase Common S
h
ares
i
ssue
dby
us. T
hi
sco
l
umn represents t
h
e num
b
er o
f
our Common S
h
ares su
bj
ect to converte
d
stock options immediatel
y
followin
g
conversion
.
(3) Includes the assumption of approximately
$
54 million in debt; also includes approximately
$
88 million of shares under
equit
y
compensation plans in Jul
y
2007
.
(4) Includes the assumption of approximately
$
5 million in debt.
We also completed several smaller acquisitions during the last five fiscal years, including:
• during fiscal 2006, purchasing the wholesale pharmaceutical, health and beauty and related drugstore
p
roducts distribution business of The F. Dohmen Co. and certain of its subsidiaries, and the remainin
g
shares of Source Medical Corporation, our Canadian joint venture;
• during fiscal 2007, purchasing SpecialtyScripts, LLC; and
• during fiscal 2009, purchasing Borschow Hospital & Medical Supplies, Inc
.
On June 9, 2010, we entered into an a
g
reement to acquire Healthcare Solutions Holdin
g
, LLC, which
p
rovides specialt
y
healthcare services. On Jul
y
15, 2010, we completed that acquisition for a $517 million cas
h
p
a
y
ment. The acquisition a
g
reement also includes earn-out pa
y
ments of up to $150 million over the next three
y
ears.
We comp
l
ete
d
severa
ldi
vest
i
ture transact
i
ons
d
ur
i
n
g
t
h
e past
fi
ve
fi
sca
ly
ears,
i
nc
l
u
di
n
g:
•
d
ur
i
n
gfi
sca
l
2007, se
lli
n
g
our
f
ormer P
h
armaceut
i
ca
l
Tec
h
no
l
o
gi
es an
d
Serv
i
ces se
g
ment, ot
h
er t
h
a
n
c
ertain
g
eneric-focused businesses, for approximatel
y
$3.2 billion in cash; our healthcare marketin
g
serv
i
ces
b
us
i
ness; an
d
our Un
i
te
d
K
i
n
gd
om-
b
ase
d
Intercare p
h
armaceut
i
ca
ldi
str
ib
ut
i
on
b
us
i
ness.
•
d
ur
i
n
gfi
sca
l
2010, consummat
i
n
g
t
h
eSp
i
n-O
ff
o
f
CareFus
i
on Corporat
i
on; an
d
se
lli
n
g
Spec
i
a
l
t
y
Scr
i
pts, LLC an
d
our Un
i
te
d
K
i
n
gd
om-
b
ase
d
Mart
i
n
d
a
l
e
i
n
j
ecta
bl
e manu
f
actur
i
n
gb
us
i
ness.
C
ustomer
s
Our lar
g
est customers, Wal
g
reen Co. (“Wal
g
reens”) and CVS Caremark Corporation (“CVS”), accounte
d
f
or approximatel
y
24% and 22%, respectivel
y
, of our revenue for fiscal 2010. The a
gg
re
g
ate of our five lar
g
es
t
customers, includin
g
Wal
g
reens and CVS, accounted for approximatel
y
57% of our revenue for fiscal 2010.
We
h
ave a
g
reements w
i
t
hg
roup purc
h
as
i
n
g
or
g
an
i
zat
i
ons (“GPOs”) t
h
at act as a
g
ents to ne
g
ot
i
ate ven
d
o
r
contracts on
b
e
h
a
lf
o
f
t
h
e
i
r mem
b
ers. Our two
l
ar
g
est GPO re
l
at
i
ons
hi
ps
i
n terms o
f
mem
b
er revenue are w
i
t
h
5