Cardinal Health to divest Cordis medical devices business to H&F for $1bn

US healthcare company Cardinal Health has agreed to divest its Cordis medical devices business to private equity company Hellman & Friedman (H&F) for about $1 billion.

Hellman & Friedman is being partnered by Ajax Health, a venture capital company, and Zeus Health, a KKR-backed medical device platform, in the transaction.

Cordis is engaged in the development and manufacturing of interventional vascular technology. Its products include RAIN Sheath Transradial Introducer, RAILWAY Sheathless Access System, and MYNX CONTROL Vascular Closure Device.

Cardinal Health had acquired Cordis from Johnson & Johnson in 2015 for $1.94 billion.

After completion of the sale, most assets and liabilities related to the Cordis business will transfer to Hellman & Friedman.

Cardinal Health to divest Cordis medical devices business to H&F for $1bn. Photo courtesy of Tumisu from Pixabay.

Cardinal Health will continue to have complete authority for lawsuits pertaining to inferior vena cava filters in the US and Canada, and also liability related to these matters.

Mike Kaufmann – CEO of Cardinal Health 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.”

Mike Kaufmann said that the company’s decision to sell Cordis is for focusing its resources in its strategic growth areas where it is an advantaged owner. Going forward, Cardinal Health will remain committed to its medical distribution and global medical products businesses, said Mike Kaufmann.

Hunter Philbrick – Partner at Hellman & Friedman said: “Cordis is an excellent fit with our philosophy of investing in great businesses as a market-leading cardiovascular device manufacturer known for high-quality products, strong physician satisfaction and superb patient outcomes.

“We are excited to invest in the talented Cordis, Ajax and Zeus teams to drive industry leadership, therapeutic innovation and improved patient experiences.”

The deal, which is subject to customary closing conditions and regulatory clearances, is expected to be wrapped up in the first half of Cardinal Health’s fiscal year 2022.