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Cardinal Health closes $6.1 million deal for Medtronic's patient recovery business

by Lauren Dubinsky, Senior Reporter | August 01, 2017
Business Affairs Operating Room
Comes with 23 product
Cardinal Health announced today that it has completed the acquisition of Medtronic’s patient recovery business for $6.1 billion.

“The patient recovery business builds on Cardinal Health’s strategy to offer scaled solutions that allow our customers to thrive in a fee-for-value health care world,” Don Casey, CEO of the medical segment at Cardinal Health, told HCB News.

The Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business encompasses 23 product categories. They span multiple market sites of care including Curity, Kendall, Dover, Argyle and Kangaroo, which are brands used in nearly every hospital in the U.S.

“This acquisition will help expand our reach across the entire continuum of care from acute care, to surgery centers, to long-term care, into the retail setting and even to the consumer, and [we] expect this acquisition will generate annual synergies of more than $150 million by the end of [fiscal year 2020],” said Casey.

This was first announced in April when it was revealed that the deal will reap cash tax benefits of at least $100 million. The plans called for the Cardinal Health to use $4.5 billion in new senior unsecured notes and existing cash for its financing.

Goldman, Sachs & Co. and Perella Weinberg Partners LP served as Cardinal Health's financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP and Jones Day served as its legal advisors.

The Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business will be integrated into Cardinal Health’s medical segment, which is led by Casey.

“We are excited to welcome the talent of more than 10,000 employees who joined our organization with the acquisition,” he said.

The company stated that efforts are off to a successful start and that all integration work and transactions will be completed in the next 18 months.

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