Cardinal Health to fork over $6.1B for three Medtronic units
Cardinal Health will acquire Medtronic’s Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency units for $6.1 billion in cash in a deal slated to close in the quarter ending Sept. 30.
The healthcare services company will gain 10,000 employees and a range of products, including the Kangaroo suite of enteral feeding pumps, the Kendall compression system and Argyle suction catheters, according to a statement.
The three units reeled in $2.3 billion in sales in the 12 months ending October 2016. Upon the deal’s close, they will be integrated into Cardinal’s Medical unit, which includes vascular closure devices, lab products, and wound care and infection control products among its offerings. The company also has a nuclear medicine unit, which markets radiopharmaceuticals for various types of imaging.
"We are thrilled about today's announcement, as this well-established product line is complementary to our medical consumables business and fits naturally into our customer offering. For this reason, this product portfolio has been on our radar for many years," said Cardinal Health CEO George Barrett in the statement.
"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, reaching customers across the entire continuum of care,” he continued.
Cardinal expects the combined companies will reap synergies exceeding $150 million each year. Cardinal’s shares were down 7% premarket on news of the deal.