Ohio’s Cardinal Health is selling its China business to Shanghai Pharmaceuticals in a deal worth $1.2 billion.
The sale includes Cardinal Health’s pharmaceutical and medical products distribution business in China.
The company expects that employees, infrastructure and various systems and processes that support this business will move to Shanghai Pharma upon closing of the transaction.
The divestiture does not include Cardinal Health’s remaining businesses in China – including Cordis – its recently acquired Patient Recovery business, its medical sourcing team or other functions.
“This will also facilitate the growth of our pharmaceutical manufacturing business, enabling us to play a significant role in the Government’s ‘Healthy China’ initiative,” said Shanghai Pharma’s Chairman Zhour Jun.
The deal is expected to close by the end of Cardinal Health’s fiscal year.