CareFusion to Acquire Pharmacy Automation Innovator Rowa
Acquisition accelerates growth of CareFusion Pyxis® dispensing technologies into global retail and hospital pharmacies
SAN DIEGO, July 5, 2011 /PRNewswire/ -- CareFusion (NYSE: CFN), a leading, global medical technology company, today announced an agreement to acquire Rowa, a Germany-based company specializing in robotic medication storage and retrieval systems for retail and hospital pharmacies, for approximately $150 million.
"Rowa is the clear pharmacy automation leader in Western Europe with innovative technology that is complementary to our Pyxis® portfolio of products," said Kieran Gallahue, chairman and CEO of CareFusion. "Combined, we see an opportunity to provide customers outside the U.S. with a complete medication management offering and accelerate our global growth in the retail and hospital pharmacy automation segments."
Rowa's core products enable high-density, high-speed storage and retrieval of pre-packaged pharmaceutical inventory. With more than 3,500 installations in 30 countries, these automated systems are designed to reduce costs and improve workflow while addressing the unique pharmacy operations requirements outside of the U.S.
"Since forming Rowa in 1996, we have focused on building a brand that is innovative and reliable with superior customer service," said Markus Willems, co-founder and managing director of Rowa. "Today, Rowa is one of the leading pharmacy robotics companies in Europe, and we look forward to taking our growth to the next level with CareFusion."
CareFusion plans to continue Rowa's longstanding focus on retail pharmacy customers, while also targeting accelerated expansion within its core hospital customers. CareFusion Pyxis automated dispensing systems put secure access to medication on the nursing floor and close to patients. The Rowa products are complementary, designed for the management of medication that takes place in the pharmacy, with technology geared for the unique packaging common in many countries outside the United States. The Rowa products secure and automate large volumes of medications and offer unique features such as refrigerated storage, a stock input and management system and a simple software user interface.
Rowa has more than 300 employees and is headquartered in Kelberg, Germany with operations in Italy, the Netherlands, Denmark and Sweden. Last year, Rowa's installations increased nine percent and the business expanded product sales into Australia, Canada and other new markets. More than 98 percent of current users would recommend Rowa products, according to a recent company survey.
The acquisition is expected to be neutral to adjusted earnings in the first year and increasingly accretive thereafter. Subject to anti-trust filings and other customary conditions, the acquisition is expected to close by the end of the first quarter of FY12.
CareFusion has recently taken other strategic steps to expand its global medication management business, including:
- Signing a distribution agreement with Grifols International earlier this month to resell BlisPack® system, the first robotic system for identifying, cutting and overwrapping unit doses from medication blister packages in hospital pharmacies across Europe, the Middle East, Africa and Asia;
- Acquiring Vestara in April, a developer of technology solutions that enable the safe, efficient disposal and tracking of environmentally sensitive pharmaceutical waste;
- Establishing a marketing relationship with PHACTS to resell software to help pharmacies track drug inventories in real-time across multiple locations; and
- Entering into an agreement with Cerner to improve the integration between Cerner's CareAware® technology and CareFusion devices, which is expected to help reduce duplicate data entry and improve the productivity of clinicians and the safety of patients.
Rowa GmbH was founded in 1996 based on an idea to improve the workflow, efficiency and customer service within a pharmacy. Fifteen years later, the company has installed more than 3,500 of its automation systems in retail and hospital pharmacies, adding 500 new customers in 2010 alone. Rowa employs more than 300, holds 41 patents for its innovative technologies and has customers in 30 countries. More information may be found at www.rowa.de.
CareFusion (NYSE: CFN) is a global corporation serving the health care industry with products and services that help hospitals measurably improve patient care. The company develops market-leading technologies including Alaris® infusion pumps, Pyxis® automated dispensing and patient identification systems, AirLife™, AVEA® and LTV® series of ventilators and respiratory products, ChloraPrep® skin prep products, MedMined™ services for data mining surveillance, V. Mueller® and Snowden-Pencer® surgical instruments and NeuroCare diagnostic products. CareFusion employs more than 14,000 people across its global operations. More information may be found at www.carefusion.com.
Cautions concerning forward-looking statements
The CareFusion news release and the information contained herein contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. The matters discussed in these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. Forward looking statements include, but are not limited to, statements about the timing of the anticipated acquisition, the potential benefits and synergies of the anticipated acquisition, including the expected impact on future financial and operating results, and post acquisition plans and intentions. The forward-looking statements contained herein are based on the current expectations and assumptions of CareFusion and Rowa and not on historical facts. The following important factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the satisfaction of conditions to closing the agreement; the risk that the businesses will not be integrated successfully; and the risk that benefits and synergies from the acquisition may not be fully realized or may take longer to realize than expected. Additional factors that may affect future results are described in CareFusion's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and Annual Report on Form 10-K for the year ended June 30, 2010. Except to the limited extent required by applicable law, CareFusion undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE CareFusion Corp.
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