UPDATE: Johnson & Johnson Announces Binding Offer from Cardinal Health to Acquire Cordis

Johnson & Johnson

today announced a binding offer from Cardinal Health to acquire its Cordis business for an aggregate value of $1.99 billion, consisting of $1.944 billion of cash proceeds from Cardinal Health plus approximately $46 million of retained net receivables. Cordis is a leader in the development and manufacture of interventional vascular technology with 2014 net revenues of approximately $780 million. "This initiative is part of our ongoing disciplined portfolio management approach to focus on our most promising opportunities to help patients and drive growth," said Gary Pruden, Worldwide Chairman, Global Surgery Group, Johnson & Johnson. "Cordis has made significant contributions to the field of cardiovascular care, and we believe the business has a promising future with Cardinal Health, a company with which we have a long-standing relationship. We are grateful for the many contributions that Cordis employees have made over the years." The acceptance period for the offer will end on May 30, 2015, unless extended, and during that time consultations with relevant works councils and trade unions are planned. If the offer is accepted, the proposed transaction would be expected to close towards the end of 2015, subject to customary closing conditions and regulatory approvals. The company will further discuss the transaction during its next quarterly earnings call on April 14, 2015. Johnson & Johnson remains committed to the fight against cardiovascular disease through its fast-growing electrophysiology business, Biosense Webster, in the Medical Devices segment and its leading cardiovascular medicine, XARELTO®, in the Pharmaceutical segment.