Cardinal Health to acquire patient care businesses
Cardinal Health entered into an agreement last week to buy Medtronic's Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses for $6.1 billion in cash. The portfolio will let Cardinal Health expand its scope into long-term care facilities, home health and in operating rooms, executives said.
The portfolio includes 23 product categories, such as Kendall, Dover and Argyle.
It will be financed through a combination of $4.5 billion in new senior unsecured notes and existing cash, the company said. The deal is expected to close in fiscal year 2018.
"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 George S. Barrett, Cardinal Health chairman and CEO. "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.”
When the transaction is complete, the businesses will be under Cardinal Health's medical segment. There are 10,000 employees working across the various units.