Cardinal Health completes Cordis acquisition for $1.944 billion

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Cardinal Health completed its acquisition of Johnson and Johnson’s Cordis business on Oct. 4 for $1.944 billion, seven months after Cardinal Health announced its offer.

Johnson & Johnson accepted the offer in May.

In 2014, Cordis had sales of approximately $780 million. The interventional vascular medical device company’s revenues were split almost evenly between its cardiovascular and endovascular products.

Cordis’s portfolio includes catheters, guidewires, vena cava filters, biliary stents and other devices. Approximately 70 percent of its sales come from outside the U.S.

Cardinal Health reiterated its previous announcement that the Cordis deal would likely be dilutive to non-GAAP diluted earnings per share from continuing operations in fiscal year 2016. During fiscal year 2017, the company expects an accretion in non-GAAP diluted earnings per share of more than $0.20 per share, which includes an incremental $0.07 to $0.08 per share of interest expense associated with the transaction’s financing.

David J. Wilson, Cordis’s worldwide president, will remain in that position. When the integration work is complete within the next few years, approximately 3,000 Cordis employees will join Cardinal Health. The business will report to Cardinal Health medical segment CEO Don Casey, a former Johnson and Johnson executive.

Johnson and Johnson said in a statement that it remained committed to cardiovascular disease through its electrophysiology business (Biosense Webster) and with the FDA-approved rivaroxaban (Xarelto), an oral anticoagulant.