Article: Cardinal agrees to buy Medicine Shoppe. (Cardinal Health Inc.; Medicine Shoppe International)

DUBLIN, Ohio - Pharmaceutical distributor Cardinal Health Inc., looking to enter the retail side of the business, has agreed to acquire Medicine Shoppe International (MSI) in a stock swap valued at about $348 million.

MSI, which is headquartered in St. Louis, is the nation's largest franchisor of retail pharmacies. The company currently has 987 locations in 46 states and 109 in seven foreign countries. During the last year, MSI pharmacies reported sales of $923 million. Revenues from franchise fees and other income was $53.8 million.

Cardinal, which last year had sales of $7.8 billion, supplies about one-fifth of the $500 million in merchandise ordered by MSI ...

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