Cardinal Health Completes Acquisition of Medtronic’s Patient Recovery Business

acquisitions in the medical field

/PRNewswire/ — Cardinal Health (NYSE: CAH) today announced that it has completed the acquisition of Medtronic’s Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business for $6.1 billion. The acquisition was funded with a combination of $4.5 billionin new senior unsecured notes, existing cash and borrowings under our existing credit arrangements.

“This business provides our customers with more product offerings and includes some well-established brands that fit naturally within our portfolio and are complementary to our current medical products business. We know these products and many of the employees well, and have seen that our team members share a common commitment to quality, customer service and the patients who we all ultimately serve,” said George Barrett, chairman and CEO of Cardinal Health. “We are extremely excited about welcoming our new colleagues from around the world to Cardinal Health.”

The Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business encompasses 23 product categories across multiple market sites of care, including numerous industry-leading brands, such as Curity, Kendall, Dover, Argyle and Kangaroo – brands used in nearly every U.S. hospital.

The company also previously announced that it expects the acquisition to be accretive to non-GAAP¹ diluted earnings per share from continuing operations by more than $0.21 per share in fiscal 2018, net of incremental annual financing-related interest expense, and includes up to $100 million of inventory step-up costs during the first few quarters following closing. As previously disclosed, the company still expects the acquisition to be accretive to non-GAAP diluted earnings per share by more than $0.55 per share in fiscal 2019, and increasingly accretive thereafter. By the end of fiscal 2020, the company assumes synergies will exceed $150 million.

The Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business will become part of Cardinal Health’s Medical segment, which is led by Don Casey, the segment’s chief executive officer. Integration efforts are off to a successful start and it is expected that all integration work and transitions will be completed over the next 18 months.

Goldman, Sachs & Co. and Perella Weinberg Partners LP served as Cardinal Health’s financial advisors on this transaction, and Skadden, Arps, Slate, Meagher & Flom LLP and Jones Day served as its legal advisors.

Non-GAAP financial measures (including footnote)

Footnote (1) Expected accretion to non-GAAP diluted earnings per share from continuing operations reflects: (A) earnings from continuing operations, excluding (1) LIFO charges/(credits), (2) restructuring and employee severance, (3) amortization and acquisition-related costs, (4) impairments and (gain)/loss on disposal of assets, (5) litigation (recoveries)/charges, net, and (6) loss on extinguishment of debt, each net of tax, (B) divided by diluted weighted average shares outstanding.

Cardinal Health presents non-GAAP diluted earnings per share from continuing operations on a forward-looking basis. The most directly comparable forward-looking GAAP measure is diluted earnings per share from continuing operations. Cardinal Health is unable to provide a quantitative reconciliation of this forward-looking non-GAAP measure to the most directly comparable forward-looking GAAP measure, because Cardinal Health cannot reliably forecast LIFO charges/(credits), restructuring and employee severance, amortization and acquisition-related costs (which Cardinal Health expects to increase significantly as a result of the acquisition of the Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses), impairments and (gain)/loss on disposal of assets and litigation (recoveries)/charges, net, which are difficult to predict and estimate. Please note that the unavailable reconciling items could significantly impact Cardinal Health’s future financial results. These items could cause earnings per share and the accretion to earnings per share to differ materially from the company’s non-GAAP expectations.

About Cardinal Health

Cardinal Health Inc. is a global, integrated healthcare services and products company, providing customized solutions for hospital systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices worldwide. The company provides clinically-proven medical products and pharmaceuticals and cost-effective solutions that enhance supply chain efficiency. Cardinal Health connects patients, providers, payers, pharmacists and manufacturers for integrated care coordination and better patient management. With the acquisition of Medtronic’s Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business the company will have approximately 50,000 employees in nearly 60 countries. Cardinal Health ranks among the top 15 on the Fortune 500. For more information, visit cardinalhealth.com, follow @CardinalHealth on Twitter and connect on LinkedIn at linkedin.com/company/cardinal-health.

For more breaking medical news visit Med Career News today.

Be the first to comment on "Cardinal Health Completes Acquisition of Medtronic’s Patient Recovery Business"

Leave a Reply

Get Med Career News in your Inbox!

If you want to keep up with the latest news and career tips in the Medical Field subscribe today!

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.