Cardinal Health to pay $6.1 billion for for several Medtronic businesses
Businesses' revenues totaled $2.3 billion for the 12-month period ending October 2016, Cardinal Health said.
Cardinal Health Corporate headquarters-Dublin, Ohio--photo via George Lange
Cardinal Health has announced plans to acquire Medtronic's Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses, with a price tag of $6.1 billion in cash, not including cash tax benefits totaling at least least $100 million, Cardinal Health announced.
The deal is expected to close in Cardinal's first quarter of the 2018 fiscal year, and will be financed via a combination of $4.5 billion in new senior unsecured notes and existing cash.
The Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses include more than 20 product categories like Curity, Kendall, Dover, Argyle and Kangaroo, which are used in numerous hospitals, Cardinal Health said.
The businesses revenues totaled $2.3 billion for the 12-month period ending October 2016, with more than 70 percent of total sales in the U.S.
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"This product portfolio has been on our radar for many years," said George S. Barrett, Cardinal Health chairman and CEO. "We distribute some of these products today and have been collaborative partners with the leadership of this business. Given the current trends in healthcare, including aging demographics and a focus on post-acute care, this industry-leading portfolio will help us further expand our scope in the operating room, in long-term care facilities and in home healthcare."
Once the deal is done, the Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses will meld into Cardinal Health's Medical Segment.
Twitter: @BethJSanborn
