Johnson and Johnson to sell Cordis business to Cardinal Health

Johnson and Johnson has announced plans to sell off its interventional vascular technology-focused Cordis business to Cardinal Health.

A binding offer has been received from Cardinal Health to acquire the Cordis business for an aggregate value of $1.99 billion (1.30 billion pounds), consisting of $1.94 billion of cash proceeds, plus approximately $46 million of retained net receivables.

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.

Cordis is a leader in the development and manufacture of interventional vascular technology and generated net revenues of approximately $780 million in 2014. The proposed sale would not affect Johnson and Johnson's commitment to the field of cardiovascular disease.

Gary Pruden, worldwide chairman of Johnson and Johnson's global surgery group, said: "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 longstanding relationship."

Last month, the group announced the acquisition of Olive Medical via its subsidiary Depuy Synthes.