Johnson & Johnson accepted nearly $2 billion from Cardinal Health for its pioneering stent business. The acquisition of Cordis is expected to close in late 2015.
The companies announced in early March that Cardinal Health had made a binding offer for Cordis, whose Palmaz-Schatz balloon expandable stent and the Cypher sirolimus-eluting stent had contributed to the development of interventional cardiovascular care. Johnson & Johnson had until May 30 to accept the offer.
Cardinal Health sees the purchase of the Fremont, Calif.-based Cordis as part of a strategic expansion in cardiology. Cordis’ 2014 annual sales totaled about $780 million, which Cardinal Health wrote was split fairly evenly between cardiology and endovascular products.
Cardinal Health paid $1.944 billion in cash in the transaction. The original deal called for $46 million of retained net receivables as well.
In a separate statement, Johnson & Johnson reiterated that it was focusing on Biosense Webster in the electrophysiology arena and the novel oral anticoagulant rivaroxaban (Xarelto) in its pharmaceutical business.