Cardinal Health, Inc. (CAH, Financial) has entered into a definitive agreement to acquire approximately 71% of The GI Alliance Holdings, LLC (GIA) for an estimated $2.8 billion. This strategic acquisition is subject to customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The merger agreement includes standard representations, warranties, and covenants, with both parties committed to securing regulatory approval. Notably, Cardinal Health has the option to purchase the remaining equity of GIA starting from the third anniversary of the closing date, with the exercise price determined at fair market value.
In conjunction with the acquisition, Cardinal Health has secured a commitment letter from Bank of America, N.A. for a 364-day senior unsecured bridge term loan facility amounting to $2.9 billion. This facility will support the acquisition and cover related fees and expenses. The commitment is subject to conditions typical for bridge acquisition financings.
Cardinal Health's CEO and CFO will discuss the acquisition in a conference call scheduled for November 12, 2024, at 8:45 a.m. Eastern time. An audio replay will be available on the company's investor relations page.
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