Summary
Cardinal Health, Inc. (CAH) announced a significant strategic move on April 18, 2017, by entering into a definitive agreement to acquire Medtronic plc's Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses for $6.1 billion in cash. This acquisition involves acquiring twelve manufacturing plants in North America, two in Europe, and three in Asia, substantially expanding Cardinal Health's operational footprint and product portfolio. The company plans to finance this substantial acquisition through long-term debt, with Goldman Sachs committed to providing a $4.5 billion bridge loan facility. The closing of the transaction is subject to customary conditions, including antitrust approvals and the expiration of the Hart-Scott-Rodino waiting period, with an outside date of April 18, 2018. This acquisition represents a major growth initiative for Cardinal Health, aiming to enhance its market position in key healthcare segments. Investors should monitor the progress of regulatory approvals and the integration of these new businesses.
Key Highlights
- 1Cardinal Health (CAH) to acquire Medtronic's Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses for $6.1 billion in cash.
- 2The acquisition includes twelve manufacturing plants in North America, two in Europe, and three in Asia.
- 3Financing for the acquisition will be facilitated by a $4.5 billion bridge loan facility committed by Goldman Sachs.
- 4Closing of the transaction is contingent upon regulatory approvals, including Hart-Scott-Rodino antitrust clearance, and other customary conditions.
- 5The outside date for closing the acquisition is set for April 18, 2018, with an extension to April 18, 2018, if antitrust matters remain outstanding.
- 6Cardinal Health also updated its fiscal 2017 guidance and provided an outlook for future fiscal years in conjunction with this announcement.