Medical technology business CareFusion (NYSE:CFN) announced Tuesday it will acquire Rowa, a Germany-based medical storage company, in a $150 million deal.
Rowa's core products allow the storage and retrieval of pre-packaged pharmaceutical inventory. With over 3,500 machines installed throughout Europe, Rowa's units help improve workflow at independent and hospital-based pharmacies.
Based in San Diego, California, CareFusion has been expanding its global medication business through several strategic developments, including the April acquisition of Vestara, which safely disposes sensitive pharmaceutical waste.
"Rowa is the clear pharmacy automation leader in Western Europe with innovative technology that is complementary to our Pyxis® portfolio of products," said CareFusion CEO, Kieran Gallahue.
"Combined, we see an opportunity to provide customers outside the U.S. with a complete medication management offering and accelerate our global growth in the retail and hospital pharmacy automation segments."
CareFusion said it believes its Pyxis product, an automated medication dispensing system, will benefit from the Rowa deal. Last year, Rowa, which holds 41 patents for its technologies, saw a 9% increase in installations.
CareFusion said the acquisition, which should close by the first quarter of 2012, is expected to be neutral to adjusted earnings in the first year, and increasingly accretive in the years following.
The transaction remains subject to anti-trust filings and other customary conditions.
CareFusion, which has developed Pyxis, a series of ventilators and respiratory products, a variety of surgical instruments, as well as NeuroCare diagnostic products, saw its stock on the New York Stock Exchange rise 0.43% to $27.79 per share as of noon on Tuesday.