Summary
On March 1, 2015, Cardinal Health, Inc. (CAH) entered into a binding offer letter to acquire certain assets of Johnson & Johnson's Cordis business for $1.944 billion in cash, on a cash-free, debt-free basis. This strategic move targets the development, manufacturing, and distribution of medical devices for interventional cardiology and endovascular procedures. The acquisition is subject to customary closing conditions, including antitrust approvals, and is expected to be finalized, pending employee representative body consultations in France and Germany, by May 30, 2015, with a potential extension to July 29, 2015. To finance this significant transaction, Cardinal Health has secured a commitment for a $1.0 billion senior unsecured bridge term loan from Goldman Sachs Bank USA. The company plans to issue senior unsecured notes before the acquisition closes to replace this bridge facility. Investors should note that the terms and conditions of this acquisition are detailed in a binding offer letter and an attached purchase agreement, with associated news releases and fact sheets also furnished as exhibits to this filing.
Key Highlights
- 1Cardinal Health to acquire Cordis business assets from Johnson & Johnson for $1.944 billion cash.
- 2Acquisition focuses on medical devices for interventional cardiology and endovascular procedures.
- 3Transaction is subject to customary closing conditions, including antitrust approvals.
- 4Binding offer letter has specific termination dates, with a potential extension.
- 5Cardinal Health secured a $1.0 billion bridge loan commitment for financing, planning to issue senior unsecured notes.
- 6The company issued a news release and fact sheet on March 2, 2015, and is hosting a webcast to discuss the acquisition.