ACQUIRES WORLDWIDE LEADER IN CARDIOLOGY AND
ENDOVASCULAR DEVICES
DUBLIN, Ohio, Oct. 4, 2015 /PRNewswire/ -- Cardinal Health
today announced that it has completed the acquisition of Johnson
& Johnson's Cordis business, a global leader in cardiology and
endovascular devices, for $1.944
billion. Planning has been ongoing since the acquisition
announcement in early March 2015, and
the integration is off to a successful start with management teams
in place worldwide.
"I'm extremely pleased to welcome our new Cordis colleagues to
Cardinal Health," said George
Barrett, chairman and CEO of Cardinal Health. "With an aging
population and the accompanying demand for less invasive medical
treatments, health systems around the world are searching for the
best ways to ensure the highest quality care in the most
cost-effective way."
The acquisition of Cordis will strengthen Cardinal Health's
portfolio of physician preference items, which include offerings in
the cardiovascular, wound management, and orthopedics areas. The
company is helping customers standardize around medical devices,
while offering innovative solutions in supply chain management,
inventory optimization, and work flow tools and data to support the
most effective management of the patient. Collectively, Cardinal
Health and Cordis will now be able to offer high-quality, daily-use
products; reliable, trackable inventory and logistics; and deep
analytic capabilities that will result in a comprehensive offering
for the entire episode of care. This multi-dimensional set of
solutions will become increasingly important with emerging
value-based payment models.
As previously announced, Cardinal Health expects the acquisition
to be slightly dilutive to its fiscal 2016 non-GAAP diluted
earnings per share (EPS) from continuing operations. The
company expects fiscal 2017 accretion in non-GAAP diluted EPS of
greater than $0.20 per share,
inclusive of the cost of an incremental $0.07-$0.08 per share of interest expense
associated with transaction financing, and for the acquisition to
be increasingly accretive thereafter. The company continues to
assume that synergies will exceed $100
million annually exiting fiscal 2018.
Cordis had annual sales in calendar year 2014 of approximately
$780 million, split almost evenly
between cardiology and endovascular products. Cordis is a global
company with a growing portfolio of products and talented people
serving health care systems throughout the world. While the U.S. is
its largest single market, 70 percent of total sales come from
outside the U.S. Cordis' international presence includes operations
in China, Japan, Germany, Italy, France, the United
Kingdom, and Brazil, among
others.
In recognition of its strong brand equity, Cordis products will
continue to be sold under the Cordis brand name, but with a logo
that identifies Cordis as a Cardinal Health company.
Integration off to a successful start
Integration teams have been engaged since the acquisition
announcement in March 2015, and the
integration process is off to a successful start. David J. Wilson remains as Cordis worldwide
president, and other executives are in place across all functions
and regions. This includes the Cordis team based in the
San Francisco Bay Area, which will
remain in the current location. In addition, global headquarters
and a Europe, Middle East and Africa hub have been established in Zug,
Switzerland. Singapore will serve as the Asia-Pacific hub, and Puerto Rico will serve as the Latin American
hub.
Approximately 3,000 employees will be joining Cardinal Health
when all integration work and transitions are completed over the
next few years. The organization will have operations in countries
around the world.
The business will report to Don
Casey, Cardinal Health's Medical segment chief executive
officer, a medical device industry veteran, and a former Johnson
& Johnson executive.
Casey noted that the combined skills and expertise of Cardinal
Health and Cordis have created a world-class technical, clinical,
and commercial talent base in cardiovascular solutions. "We are
extremely excited to welcome this team, with its deep knowledge,
strong customer and distributor relationships, commitment to
patients, and innovative spirit, to the Cardinal Health family,"
said Casey.
For more information on Cordis and Cardinal Health's other
cardiovascular solutions go to
http://www.cardinalhealth.com/en/product-solutions/medical/cardiovascular.html.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE:
CAH) is a $103 billion health care
services company that improves the cost-effectiveness of health
care. Cardinal Health helps pharmacies, hospitals, ambulatory
surgery centers, clinical laboratories and physician offices focus
on patient care while reducing costs, enhancing efficiency and
improving quality. Cardinal Health is an essential link in the
health care supply chain, providing pharmaceuticals and medical
products and services to more than 100,000 locations each day and
is also the industry-leading direct-to-home medical supplies
distributor. The company is a leading manufacturer of medical and
surgical products, including gloves, surgical apparel and fluid
management products. In addition, the company operates the nation's
largest network of radiopharmacies that dispense products to aid in
the early diagnosis and treatment of disease. Ranked #26 on the
Fortune 500, Cardinal Health employs nearly 35,000 people
worldwide. More information about the company may be found at
www.cardinalhealth.com and @CardinalHealth on Twitter.
Cautions Concerning Forward-Looking Statements
This
release contains forward-looking statements addressing Cardinal
Health's acquisition of Cordis and other statements about future
expectations, prospects, estimates and other matters that are
dependent upon future events or developments. These statements may
be identified by words such as "expect," "anticipate," "intend,"
"plan," "believe," "will," "should," "could," "would," "project,"
"continue," "likely," and similar expressions, and include
statements reflecting future results or guidance, statements of
outlook and expense accruals. These matters are subject to risks
and uncertainties that could cause actual results to differ
materially from those projected, anticipated or implied. These
risks and uncertainties include: the ability to retain
customers and employees of Cordis and to successfully integrate the
Cordis into Cardinal Health's operations, and the ability to
achieve the expected synergies as well as accretion in earnings.
Cardinal Health is subject to additional risks and uncertainties
described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K
reports and exhibits to those reports. This release reflects
management's views as of October 4,
2015. Except to the extent required by applicable law,
Cardinal Health undertakes no obligation to update or revise any
forward-looking statement.
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SOURCE Cardinal Health