Cardinal Health today has agreed to acquire The Harvard Drug Group (THDG), a distributor of generic pharmaceuticals, over-the-counter medications, and related products to retail, institutional, and alternate care customers. THDG is currently owned by Court Square Capital Partners. Cardinal Health will pay $1.115 billion using existing cash and new debt. The transaction is expected to close in the beginning of fiscal year 2016 subject to regulatory approvals and other customary closing conditions.

In addition to enhancing the company’s generic pharmaceutical distribution business, the acquisition expands Cardinal Health’s existing telesales programs and capabilities; broadens the company’s portfolio of over-the counter pharmaceutical products; and brings specialized packaging offerings to meet the needs of hospital systems and other institutions.

Headquartered in Livonia, Mich., The Harvard Drug Group had revenues of approximately $450 million in 2014. There are 450 employees and two distribution facilities included in the transaction.

Source: Cardinal Health