Medtronic sells majority of medical supplies unit to Cardinal for $6.1B

Minneapolis-based Medtronic will sell part of its patient monitoring and recovery unit to Dublin, Ohio-based Cardinal Health for $6.1 billion in cash, reports StarTribune.

Through the deal, Cardinal Health will acquire 23 product categories from Medtronic — including wound care, incontinence and electrodes service — along with 17 dedicated manufacturing facilities and 10,000 employees.

Medtronic, which acquired the supplies business through its 2015 takeover of Covidien, will maintain control of its respiratory and monitoring products business and its renal care solutions business, according to the report.

"These products — while truly meaningful to patients in need — are best suited under ownership that can provide the investment and focus that these businesses require," Medtronic CEO Omar Ishrak said in a statement. "At the same time, we can put these proceeds to work, investing over the long-term in higher returning internal and external opportunities."

Medtronic expects the transaction to close in the second quarter of fiscal year 2018.

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