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DUBLIN, Ohio -- Cardinal Health, a global provider of healthcare products and services -- announces a definitive agreement to acquire the assets of privately held Enturia Inc. for $490 million. The cash transaction includes Enturia's leading line of infection prevention products sold under the ChloraPrep(R) brand name and is expected to close within 60 days, subject to customary regulatory approvals and other conditions.
ChloraPrep(R) brand products are used widely in U.S. hospitals and surgery centers to disinfect the skin before surgical and vascular procedures to help prevent bloodstream and surgical site infections, two of the most common types of healthcare-associated infections (HAIs) among patients.
The acquisition will complement Cardinal Health's infection prevention offerings by adding a differentiated and proven product line to the company's Medical Products and Technologies segment. Numerous organizations that focus on improving hospital safety have cited the active ingredient in ChloraPrep(R) products as the clinically preferred antiseptic for preoperative skin preparation.
Today, Cardinal Health's infection prevention offerings range from MedMined(TM) electronic infection surveillance services that track and help manage hospital HAI rates, to medical products and surgical apparel that help providers lower infection rates. Cardinal Health plans to accelerate sales of ChloraPrep(R) products to both hospital and alternate-care customers through its U.S. and international sales networks. Enturia's rich product pipeline is expected to help expand the base of applications for ChloraPrep(R) products.
"ChloraPrep(R) products bring a new capability and platform to our infection prevention line-up," said R. Kerry Clark, chairman and CEO of Cardinal Health. "The technology is well aligned with our mission to improve patient safety. This is another good example of a tuck-in acquisition that complements our Clinical and Medical Products sector and advances our strategy to help healthcare providers reduce HAIs and the burden they cause to the quality and cost of care."
Enturia was founded as Medi-Flex Hospital Products in 1985. Over the past two years, the company's revenue has grown more than 70 percent to approximately $140 million in 2007. The company has about 600 employees in Kansas, Texas and the United Kingdom.
"We are very excited to join Cardinal Health, one of the world's premier healthcare companies, and a company that shares our vision to prevent infections in hospitals around the world," said Joe Brandmeyer, chairman and founder of Enturia. "Cardinal Health has the domestic and global infrastructure to help ChloraPrep(R) products achieve their market potential and the financial strength to invest in continued innovation. There is also a strong cultural fit between our management teams with a shared goal of reducing infections for patients and healthcare providers everywhere."
The acquisition is expected to be slightly dilutive to Cardinal Health's earnings for the remainder of fiscal year 2008 and accretive each year thereafter. The company's outlook for non-GAAP diluted earnings per share (EPS) from continuing operations(1) for fiscal 2008, including the impact of the acquisition, remains unchanged at $3.75 to $3.85.
ChloraPrep(R) products are cleared by the Food and Drug Administration and use a clinically preferred concentration of chlorhexidine gluconate (CHG) and isopropyl alcohol delivered through proprietary, disposable applicators. The products penetrate the first five cell layers of the skin, which helps reduce skin-dwelling microorganisms that cause infections. The applicator design eliminates direct hand-to-patient contact, helping prevent cross contamination. The solution in ChloraPrep(R) products is clinically proven to be effective for at least 48 hours against some of the most costly and difficult- to-treat microorganisms including methicillin-resistant Staphylococcus aureus (MRSA), Vancomycin-resistant Enterococci (VRE), Clostridium difficile, Acineobacter, gram-positive and gram-negative bacteria and most viruses and fungi.
Cardinal Health, Inc. is an $87 billion global company serving the healthcare industry.
(1) Non-GAAP diluted EPS from continuing operations: earnings from continuing operations, excluding special items and impairment charges and other, both net of tax, divided by diluted weighted average shares outstanding.
Source: Cardinal Health, Inc.