Cardinal Health to sell Cordis medical device business for $1B

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Cardinal Health said March 12 it is selling its Cordis medical device business to private equity firm Hellman & Friedman for roughly $1 billion. 

Cordis makes cardiology and endovascular devices. Johnson & Johnson sold the business to Cardinal Health in 2015 for about $2 billion. 

The sale of the business to Hellman & Friedman is expected to close in the first half of Cardinal's fiscal 2022 year, the company said. 

"Cordis has a long history of innovation in minimally-invasive cardiovascular technology, and we are confident that with H&F as its owner, Cordis will be well-positioned for growth, innovation and success," Mike Kaufmann, Cardinal Health's CEO, said in a news release. 

Mr. Kaufmann said Cardinal decided to sell Cordis to focus its resources on strategic growth areas. 

Cardinal estimates that, after the completion of the transition services agreement, the sale of Cordis will decrease its medical segment profit by about $60 million to $70 million on an annual run-rate basis. The company also expects a pretax loss of up to $120 million in the third quarter of 2021 after the deal closes. 

The Wall Street Journal reported March 12 that Cardinal Health has received a subpoena from the U.S. Securities and Exchange Commission for information on Cordis. The commission reportedly requested documents from 2015 to 2019 related to Cordis' inventory, the analysis of goodwill in its medical segment and other matters, the Journal reported. 

Becker's Hospital Review has reached out to Cardinal Health for more information and will update this article accordingly. 

Read Cardinal Health's full news release here

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