Medical technology company CareFusion Corporation (CFN) recently made a deal to buy German medication storage systems maker Rowa GmbH for roughly $150 million.
Rowa, which has customers in 30 countries, specializes in high-speed robotic medication storage and retrieval systems for retail and hospital pharmacies. The company has deployed more than 3,500 automation systems in retail and hospital pharmacies and added 500 new customers last year.
In addition to its stronghold in Germany, Rowa has operations in Italy, the Netherlands, Denmark and Sweden. The company’s installations climbed 9% in 2010 and it expanded product sales into Australia, Canada and other new markets during the year.
Rowa’s automated systems, which are used to store and retrieve packaged pharmaceutical inventories, are geared to cut costs and improve workflow. Its products and technologies are complementary to CareFusion’s Pyxis automated dispensing systems.
The acquisition, which is subject to antitrust clearance and other closing conditions, is expected to close by the first-quarter fiscal 2012. CareFusion expects the transaction to be neutral to its adjusted earnings in the first year following its completion and accretive thereafter. While CareFusion plans to retain Rowa’s longstanding focus on retail pharmacy customers, it will also aim at accelerating expansion within its core hospital customers.
California-based CareFusion is dedicated to facilitate hospitals and measurably improve safety and quality of care for patients. The company is a leader in dispensing technology. It offers products in the areas of surgical instruments, respiratory care, IV infusion, medication and supply dispensing as well as infection prevention.
CareFusion’s products include Alaris IV pumps as well as the Pyxis automated dispensing and patient identification system. The company competes with Baxter International (BAX) and Becton, Dickinson and Company (BDX), among others, in select niches.
CareFusion has undertaken a number of initiatives (including two reselling agreement and an acquisition) recently to boost its global medication management business.
The company has grown its Pyxis medication management portfolio with the Pyxis EcoStation (a technology that enables hospitals to recognize, classify and separate pharmaceutical waste) by acquiring California-based Vestara, which solely concentrates on devising solutions for the management of pharma-related waste.
The Rowa acquisition will enable CareFusion to offer a comprehensive suite of medication management products to overseas customers while expanding its foothold in the global retail and hospital pharmacy automation market segments.
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