par John R. Fischer
, Senior Reporter | August 05, 2021
Cardinal Health has completed the approximately $1 billion sale of its Cordis business to Hellman & Friedman.
The divestiture allows Cardinal Health to focus on strategic growth areas of its business.
"Through substantial investment in R&D, M&A, and strategic partnerships, this investment will reintroduce dramatic innovation and growth to a household name. Moving forward, Cordis will be laser-focused on three critical value drivers: enabling technical differentiation and innovation, ensuring the lowest per-patient cost and moving with rapid speed to market," Shar Matin, CEO at Cordis, told HCB News.
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Cordis designs a number of minimally invasive cardiovascular products, including stents, catheters, sheaths, closure devices and balloons. It expanded its portfolio in 2019 to offer solutions designed to facilitate the transradial approach (TRA) for interventional cardiology procedures.
Prior to the sale, Cordis brought approximately $60 million to $70 million into Cardinal Health on an annual run-rate basis to H&F. The transaction includes the assumption by H&F of certain liabilities and Cardinal Health’s retention of certain working capital accounts. Cardinal Health will also retain full authority for lawsuits and liability related to inferior vena cava filters in the U.S. and Canada.
As part of its definitive agreement with H&F, Cardinal Health classified the Cordis business as held for sale
back in March, and was authorized to incur costs associated with the planned divestiture of up to $125 million, primarily for its fiscal years 2021 and 2022.
"H&F combines deep health sector knowledge, with past investments in Multiplan and Medline, as well as a strong track record and experience as a leading technology investor (e.g. Ultimate Kronos Group.) The firm’s investment, alongside Ajax Health and Zeus, will enable Cordis to move at pace toward its strategic goals while continuing to provide incredible value to its stakeholders," said Matin.
Investments in Cordis' core business will be made through an independent R&D engine, the Cordis Accelerator, to develop and commercialize a new pipeline of products exclusively for Cordis. Duke Rohlen, CEO of Ajax Health and Zeus Health, partners to H&F in the transaction, and executive chairman-designate of Cordis, will serve as CEO of Cordis Accelerator.
In addition to the sale, Cardinal Health plans to release its fourth-quarter and year-end financial results for its fiscal year 2021 this month, prior to the opening of trading on the New York Stock Exchange. Back to HCB News