Cardinal Health To Acquire Johnson & Johnson's Cordis Business - Quick Facts

(RTTNews) - Cardinal Health (CAH) announced plans to acquire Johnson & Johnson's Cordis business, a global manufacturer of cardiology and endovascular devices, for $1.944 billion in cash, or approximately $1.594 billion, net of the present value of tax benefits.

Headquartered in Fremont, Calif., Cordis had annual sales in 2014 of approximately $780 million, split almost evenly between cardiology and endovascular products. Cordis' international presence includes operations in more than 50 countries, including China, Japan, Germany, Italy, France, the United Kingdom, and Brazil.

The transaction is expected to close towards the end of calendar 2015. Assuming this timing, Cardinal Health expects fiscal 2017 accretion in non-GAAP earnings per share from continuing operations of greater than $0.20 per share. The company expects the acquisition to be increasingly accretive thereafter.

"The acquisition of Cordis is a significant step forward in our cardiovascular strategy. This acquisition follows a sequence of strategic moves for Cardinal Health in the areas of cardiology, wound management and orthopedics," said George Barrett, chairman and CEO.