Cardinal Health may purchase Medtronic’s medical supplies business for $6 billion
Cardinal Health is in exclusive talks to purchase Medtronic’s medical supplies business, sources told Reuters on April 5.
The acquisition, estimated at approximately $6 billion, could be announced later this month, according to Reuters. However, sources told the news agency that the negotiations could end without a deal.
Cardinal Health and Medtronic declined comment to Reuters.
Medtronic acquired much of its medical supplies business in its $50 billion purchase of Covidien, which closed in January 2015.
In late January, Bloomberg reported that Medtronic was considering selling its medical supplies business. At the time, Bloomberg said the business’s earnings before interest, taxes, depreciation and amortization were approximately $500 million.
Medtronic’s supplies include needles, catheters, monitoring equipment and medical instruments. They are used primarily in hospitals, surgical centers, home care centers and long-term care facilities.
In October 2015, Cardinal Health acquired Johnson and Johnson’s Cordis business for $1.94 billion. Cordis’s portfolio includes catheters, guidewires, vena cava filters, biliary stents and other devices.
Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.