Cardinal Health to construct new 250,000 sq ft facility

Cardinal Health has announced restructuring plans to consolidate its largest business segments with the construction of a 250,000 square foot site alongside its existing headquarters and the relocation of 700 jobs.

The firm’s medical and surgical supply distribution business based in Waukegan, Illinois, will be combined with parts of the firm’s pharmaceutical distribution segment and moved to central Ohio in order to improve the organisation of its supply chain services.

It is hoped that this reorganisation will result in improved support functions to benefit customers and the sharing of best practice at the firm.

R Kerry Clark, chief executive officer of Cardinal Health, said: “Bringing these two similar businesses together into one location will result in a more streamlined organisation and create more value for customers than either unit could accomplish alone.”

He added that both state and local government officials had played a key role in the relocation of 700 jobs and facilitating the enlargement of the company’s headquarters at its Dublin, Ohio site.

Last week, Cardinal Health narrowed its earnings per share guidance for the fiscal year ending June 2007 to $3.32-$3.40 (1.66-1.7 pounds), figures in the upper-half of its previous estimate.