Cardinal Health to Acquire Cordis

March 2, 2015—Cardinal Health announced plans to acquire Johnson & Johnson’s Cordis business for $1.944 billion in cash. The transaction, which is expected to be financed with $1 billion in new senior unsecured notes and cash, is expected to close in the United States and other key countries toward the end of calendar year 2015.

According to Cardinal Health, Cordis had annual sales in 2014 of approximately $780 million, split almost evenly between cardiology and endovascular products. The United States is Cordis’ largest single market, but 70% of total sales come from Cordis’ international presence, which is in 50 countries including China, Japan, Germany, Italy, France, the United Kingdom, and Brazil. 

Cardinal Health advised that the consultation process with the employees’ representative bodies in applicable jurisdictions, including France and Germany, is underway. Upon completion of that process, Cardinal Health expects to enter into a definitive purchase and sale agreement in respect of the proposed acquisition. The proposed transaction will also be subject to customary closing conditions, including regulatory approvals, and is expected to close in the approximately 20 principal countries toward the end of calendar year 2015, and in the remaining countries on a rolling basis afterward.