Cardinal Health expands scope in home health care
DUBLIN, Ohio – Cardinal Health has entered into a definitive agreement to buy the patient care, deep vein thrombosis and nutritional inefficiency business of Medtronic for $6.1 billion in cash.
Total revenues for that business, which encompasses 23 product categories across multiple market settings, were $2.3 billion for the 12 months ending October 2016. More than 70% of total sales were in the U.S., according to a press release.
“Given the current trends in health care, 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,” said George Barrett, chairman and CEO of Cardinal Health, in the release.
Cardinal Health says the business is complementary to its medical consumables business and, once the transaction is complete, it will become part of its medical segment, which is led by Don Casey, that segment’s CEO.
Cardinal Health expects to finance the deal with a combination of $4.5 billion in new senior unsecured notes and existing cash. It expects to close the deal in the first quarter of its fiscal year 2018.