Cardinal Health, Dublin, Ohio, has signed a definitive agreement to sell its Cordis business to San Francisco-based Hellman & Friedman (H&F) for approximately $1 billion. The transaction is expected to close in the first half of Cardinal Health’s fiscal year 2022, subject to customary closing conditions and regulatory clearances.
“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,” says Mike Kaufmann, CEO of Cardinal Health. “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. Looking forward, we remain committed to our medical distribution and global medical products businesses.”
“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,” says Hunter Philbrick, partner at H&F. “We are excited to invest in the talented Cordis, Ajax, and Zeus teams to drive industry leadership, therapeutic innovation and improved patient experiences.”
“We at Ajax Health and Zeus Health are ecstatic about injecting growth into Cordis’ powerful platform, and will do so through investments in the core business and through an independent R&D engine—the ‘Cordis Accelerator’—to develop and commercialize a new pipeline of products exclusively for Cordis,” says Duke Rohlen, CEO of Ajax Health and Zeus Health, partners to H&F in the transaction, and executive chairman-designate of Cordis and CEO of Cordis Accelerator. “We see an unparalleled opportunity to partner with both existing Cordis leadership and H&F to combine a best-in-class innovation engine with a strong and robust commercial chassis. Together, we will establish Cordis as the standard bearer for medical device innovation.”
After closing, most assets and liabilities associated with the Cordis business will transfer to H&F. Cardinal Health will retain full authority for lawsuits related to inferior vena cava filters in the United States and Canada, as well as liability associated with these matters. Cardinal Health estimates that, after completion of the transition services agreement, the divestiture of the Cordis business will decrease Medical segment profit by approximately $60 million to $70 million on an annual run-rate basis.