Cardinal Health completes USD 3.3bn sale of PTS division to Blackstone
Cardinal Health, a global provider of products and services that improve the safety and productivity of health care, has completed the sale of its Pharmaceutical Technologies and Services (PTS) segment to The Blackstone Group for approximately USD 3.3 billion.
Cardinal Health announced on Nov. 30, 2006 that it planned to divest PTS to focus resources on its four remaining segments serving health-care provider customers, and on Jan. 25, 2007 Cardinal Health announced the agreement with Blackstone.
PTS is a leading provider of advanced technologies and outsourced services for the pharmaceutical, biotechnology and consumer health industry. PTS develops, manufactures and packages pharmaceutical and other products for customers in nearly 100 countries, employs approximately 10,000 at more than 30 facilities worldwide and generates more than USD 1.7 billion in annual revenue.
Among its core offerings, PTS develops and manufactures oral and sterile pharmaceuticals in nearly all major dosage forms, and offers proprietary technologies used in many well-known prescriptions and over-the-counter products. PTS is also the largest contract packager of pharmaceuticals.
'We are pleased to begin this new chapter in our history,' said John Lowry, Chief Executive Officer of PTS. 'We have a long heritage of providing customers with creative solutions and consistent service, and we expect to create even more value for our customers in the future with Blackstone as our partner.'
Commenting on the acquisition, Chinh Chu, Senior Managing Director of The Blackstone Group, said: 'We believe the pharmaceutical outsourcing sector is in its early stages of growth as pharmaceutical and biotechnology companies of all sizes will increasingly rely on third parties for the development, manufacture, and packaging of pharmaceutical and other products. Blackstone is pleased to be partnering with the existing PTS management team, led by CEO John Lowry, who will be significant investors in PTS alongside Blackstone.'
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a USD 79 billion, global company serving the health-care industry with products and services that help hospitals, physician offices and pharmacies reduce costs, improve safety, productivity and profitability, and deliver better care to patients.
With a focus on making supply chains more efficient, reducing hospital-acquired infections and breaking the cycle of harmful medication errors, Cardinal Health develops market-leading technologies, including Alaris® IV pumps, Pyxis® automated dispensing systems, MedMined® data mining software and the CareFusion® patient identification system. The company also manufactures medical and surgical products and is one of the largest distributors of pharmaceuticals and medical supplies worldwide. Ranked No19 on the Fortune 500 and No1 in its sector on Fortune's ranking of Most Admired firms, Cardinal Health employs more than 40,000 people on five continents.