Consolidation in the U.S. drug distribution business continues as Cardinal Health (NYSE:CAH) has purchased a Chicago-area regional drug wholesaler, Dik Drug Company.
The acquisition was first reported by Adam Fein at Drug Channels and confirmed to MedCity News in a statement from a Cardinal spokeswoman.
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Dublin, Ohio-based Cardinal said it signed a definitive agreement to acquire Dik last week, and the deal is expected to close later this summer.
Dik is a closely held, nearly 100-year-old company with customers mostly in the Midwest. Fein put the company’s annual revenue at less than $500 million.
Cardinal said Dik has more than 500 retail independent customers with high generic purchasing volume.
“Dik Drug is known for being easy to do business with, has strong customer loyalty and has received high marks for customer service,” Cardinal said. “At this time, we will not be changing their model, which means that Dik Drug customers will still have the same sales consultant, delivery driver, customer service and same distribution center.”
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Cardinal wouldn’t disclose the price of the deal.
A Dik Drug representative didn’t immediately return a call.
Cardinal has been an aggressive acquirer of regional drug distributors in recent years, with its most recent such deal a 2010 purchase of New York-area Kinray for $1.3 billion.
