Cardinal Health sells unit to private equity group

Cardinal Health, the medical services company, has agreed to sell its healthcare marketing systems (HMS) arm to a private equity group.

Platinum Equity has not disclosed the terms of the purchase, but highlighted HMS’ revenues of $200 million per year and its ability to deliver “promotional and strategic communications”, as well as materials to the pharmaceutical and biotechnology industry.

HMS will be used as a standalone business, with the potential for further acquisitions that would be complementary to the company.

Matt Young, principal lead on Platinum Equity’s transaction team, commented: “HMS provides vital services in a rapidly growing market, and has strong relationships with major pharmaceutical and biotech customers.”

“We believe that’s a very solid platform for future growth,” he added.

Last month, Cardinal Health itself announced the acquisition of Care Fusion, an operator of wireless barcoding systems for use in hospitals.

The company claims that the takeover of Care Fusion would expand Cardinal’s own patient safety and management approach.