Cardinal Health is offering to buy the stent pioneering company Cordis for almost $2 billion, Johnson & Johnson announced.
Cardinal Health made a binding offer that combines $1.94 billion in cash and $46 million of retained net receivables. Johnson & Johnson has until May 30 to accept the deal. If it is accepted, the company estimated the acquisition would close by the end of 2015.
Cordis has been a leader in the development of stents used in interventional cardiology, including launching the Palmaz-Schatz balloon expandable stent and the Cypher sirolimus-eluting stent. The company’s 2014 annual sales of cardiology and endovascular products totaled $780 million.
"Cordis has made significant contributions to the field of cardiovascular care, and we believe the business has a promising future with Cardinal Health, a company with which we have a long-standing relationship,” Gary Pruden, Worldwide Chairman, Global Surgery Group, Johnson & Johnson, said in a release.
“We are well-positioned to help customers standardize around mature medical devices, while bringing them innovative solutions around supply chain management, inventory optimization, and work flow tools and data to support the most effective management of the patient," added George Barrett, chairman and CEO of Cardinal Health.
Don Casey, Cardinal Health's Medical Segment chief executive officer, will lead the business once the deal is completed.