Johnson & Johnson said Thursday that it has formally
accepted Cardinal Health Inc.'s March offer to buy its
heart-product business for about $1.94 billion in cash.
J&J said it accepted the offer after consulting with work
councils and trade unions. The deal, subject to regulatory
approvals, is expected to close near the end of the year.
The deal will add stents and catheters to the list of products
Cardinal offers to hospitals, physicians and ambulatory
centers.
The business, Cordis, focuses on less-invasive treatments for
vascular disease. Cordis had $780 million in sales in 2014, with
about 70% coming from outside the U.S.
The deal comes as Cardinal, a drug wholesaler that also makes
gloves and surgical apparel, works to expand its portfolio of
medical products as hospitals merge and consolidate.
J&J, meanwhile, has been working to pare its wide-ranging
portfolio to focus on higher-growth businesses and reduce costs.
J&J, a pioneer in stents that prop open clogged heart arteries,
said years ago that it would get out of that business.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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