Cardinal Health to Buy Syncor for $870 Million

Drug wholesaler Cardinal Health Inc. said it will pay about $870 million in stock to buy Syncor International Corp., the leading provider of pharmacy services that uses radioactive compounds to diagnose and treat ailments.

Dublin, Ohio-based Cardinal is buying the business to supplement its 2001 acquisition of Bindley Western, which has a strong franchise in nuclear medicine.

The deal’s value is based on the 14 million Cardinal shares offered to Syncor holders at $62.08 apiece on the New York Stock Exchange on Friday afternoon, after the deal was announced. Each Syncor common share will be exchanged for 0.52 Cardinal common share, the companies said.

Cardinal, which closed down 41 cents at $61.94 on the NYSE, said it will assume about $202 million of debt from Woodland Hills-based Syncor.

Syncor, whose shares rose $3.24, or more than 11%, to close at $31.45 on Nasdaq, compounds and dispenses radiopharmaceuticals to diagnose and treat tumors, heart disease and other ailments.