Cardinal Health extends China footprint, buying leading pharma distributor Zuellig for $470 million

USA headquartered Cardinal Health  (NYSE: CAH) yesterday completed the $470 million acquisition of privately-held Zuellig Pharma China, a leading health care distribution business in China, known locally as Yong Yu, and the largest pharmaceutical importer in the country. The transaction extends Cardinal Health's distribution and services presence into one of the world's fastest growing health care markets and provides a platform to drive long-term growth, the company says.

With the closing, Cardinal Health said it is well positioned in the pharmaceutical distribution market in China, which is expected to grow at a compound annual growth rate of 20 percent through 2014 and become the second largest pharmaceutical market in the world after the USA.

"This is an exciting day for Cardinal Health," said George Barrett, chairman and chief executive of Cardinal Health. "The acquisition of Yong Yu follows an extensive evaluation of opportunities to drive growth in targeted geographies outside of North America where we believe our core capabilities would add value. China is an extraordinary market of enormous potential."