Cardinal Health closes $6B buy of Medtronic patient care, DVT and nutritional insufficiency biz

Cardinal Health (NYSE:CAH) said today it closed its $6.1 billion acquisition of Medtronic‘s (NYSE:MDT) patient care, deep vein thrombosis and nutritional insufficiency business.

Dublin, Ohio-based Cardinal Health said that the acquisition was funded through a combined $4.5 billion in new senior unsecured notes alongside existing cash and borrowings from credit facilities.

The deal includes a total of 23 product categories across multiple market sites of care, Cardinal Health said, including the brands Curity, Kendall, Dover, Argyle and Kangaroo.

Cardinal Health said it expects the acquisition to be accretive to non-GAAP diluted earnings per share by more than 21¢ per share during its next fiscal year, including up to $100 million of inventory step-up costs during the 1st few quarters after the deal closes.

The company said it expects the deal to be accretive to non-GAAP EPS by more than 55¢ per share by its fiscal 2019 year, and increasingly accretive moving forward.

The company said that the newly acquired businesses will become part of its Cardinal Health Medical segment, and that integration and transition work have begun with a slated completion at 18 months out.

“This business provides our customers with more product offerings and includes some well-established brands that fit naturally within our portfolio and are complementary to our current medical products business. We know these products and many of the employees well, and have seen that our team members share a common commitment to quality, customer service and the patients who we all ultimately serve. We are extremely excited about welcoming our new colleagues from around the world to Cardinal Health,” Cardinal Health CEO George Barrett said in a press release.

Cardinal Health shares have gained 0.5% today, at $78.02 as of 10:08 a.m. EDT.

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