Cardinal Health said on Monday it would acquire Viasys Healthcare , which makes medical products for respiratory care and other uses, for about $1.5 billion, including debt.
Cardinal Health, one of the top three U.S. drug distributors, plans to make a cash tender offer for Viasys for $42.75 per share. That is a roughly 35% premium over Viasys' Friday closing price of $31.55 on the New York Stock Exchange.
The deal is worth $1.42 billion, based on 33,279,330 Viasys shares outstanding listed in the company's most recent quarterly filing.
Viasys, which had revenue of $610 million last year, focuses on respiratory, neurology, medical disposable and orthopedic products.
Cardinal said the deal, which it expects to complete this summer, would make it a leader in the more than $4 billion respiratory care market and complement its medical disposables business.
Cardinal Health confirmed its forecast for the current fiscal year of non-GAAP earnings per share from continuing operations of $3.32 to $3.40.
It expects the Viasys acquisition to hurt non-GAAP earnings by up to 10 cents in fiscal 2008. But it repeated the 2008 forecast it previously provided of $3.95 to $4.15, which also includes using proceeds from the sale of its Pharmaceutical Technologies and Services segment to buy back shares.
Cardinal said in January it would sell its PTS unit for about $3.3 billion to the Blackstone Group.