Cardinal Health closes Syncor deal

Only a few weeks ago, the acquisition of Syncor International by Cardinal Health appeared to be hanging by a thread (SCAN 11/27/02). No more. The deal closed Jan. 1, making Cardinal Health the leading provider of nuclear pharmacy services in the U.S., according to the company. Syncor's domestic operations will be integrated with Central Pharmacy Services to become the Nuclear Pharmacy Services business of Cardinal Health. Due diligence by Cardinal Health turned up improprieties in certain activities conducted by foreign subsidiaries of Syncor. Subsequent involvement by the U.S. Department of Justice and Securities and Exhange Commission led to a fine and civil penalty. It brought a windfall for Cardinal Health, which adjusted its stock swap purchase price down from $1.1 billion to $750 million.

In the days following the acquisition, Cardinal Health entered a definitive agreement to sell the diagnostic imaging centers previously owned by Syncor to InSight Health Services. Sale of the centers is expected to be finalized through a series of closings beginning about Jan. 31 and running until early May 2003.