Cordis is involved in the development and manufacturing of interventional vascular technology
Hellman & Friedman has agreed to acquire Cardinal Health’s Cordis business. (Credit: Gerd Altmann from Pixabay)
Private equity company Hellman & Friedman (H&F) has agreed to acquire Cordis business from Cardinal Health for around $1bn.
The deal consists of the buyer’s assumption of certain liabilities, as well as the seller’s retention of certain working capital accounts.
Cardinal Health will hold full authority for lawsuits associated with inferior vena cava filters in the US and Canada, as well as the liability associated with these matters.
Cordis is engaged in the development and manufacturing of interventional vascular technology. The company offers cardiovascular products, endovascular products and biliary stent products.
Cordis’ cardiovascular portfolio consists of interventional products such as sheaths, diagnostic guidewires, diagnostic catheters, steerable guidewires and PTCA balloons.
Its endovascular suite comprises sheaths, access accessories, diagnostic guidewires, crossing devices, diagnostic catheters, steerable guidewires, guiding catheters, PTA balloons, vena cava filters and vascular closure devices.
In addition, Cordis offers a range of self-expanding and balloon expandable biliary stents such as the S.M.A.R.T. flex biliary stent, S.M.A.R.T. CONTROL transhepatic biliary stent and PALMAZ GENESIS transhepatic biliary stent.
Cardinal Health CEO Mike Kaufmann 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.
“Cardinal Health and H&F have a shared passion for delivering high-quality medical products to customers and we are excited about the future for the Cordis business under H&F’s ownership.”
Subject to customary closing conditions and regulatory clearances, the deal is expected to be completed in the first half of Cardinal Health’s fiscal year 2022.
Upon closing of the deal, most assets and liabilities related to the Cordis business will be transferred to H&F.
Once the transition services agreement concludes, Cardinal Health expected that the divestiture of the Cordis business will reduce medical segment profit by around $60m to $70m on an annual run-rate basis.
J.P. Morgan Securities is acting as exclusive financial advisor to Cardinal Health, while Skadden, Arps, Slate, Meagher & Flom served as the firm’s legal advisor.
UBS Investment Bank acted as the sole financial advisor to Hellman & Friedman, while Kirkland & Ellis served as the firm’s legal counsel.