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March 12, 2021, 9:10 a.m. EST

Cardinal Health to sell Cordis business to Hellman & Friedman for $1 billion

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By Tomi Kilgore

Cardinal Health Inc. /zigman2/quotes/206646342/composite CAH +0.43% announced Friday an agreement to sell its minimally invasive cardiovascular technology business Cordis for about $1 billion to Hellman & Friedman. Shares of the pharmaceutical distributor and maker of laboratory products rose 0.5% in premarket trading. The deal is expected to close in the first half of Cardinal Health's fiscal 2022. The company expects the deal to reduce its medical segment profit by $60 million to $70 million a year. The company expects to record asset-divestiture costs of $125 million, primarily in fiscal 2021 and 2022. "Our decision to divest Cordis demonstrates our disciplined approach to evaluating our portfolio and focusing our resources in our strategic growth areas where we are an advantaged owner," said Chief Executive Mike Kaufmann. "Looking forward, we remain committed to our medical distribution and global medical products businesses." Cardinal's stock has gained 2.7% over the past three months through Thursday, while the SPDR Health Care Select Sector ETF /zigman2/quotes/205918244/composite XLV +0.50% has tacked on 2.4% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.49% has gained 7.5%.

/zigman2/quotes/206646342/composite
US : U.S.: NYSE
$ 56.34
+0.24 +0.43%
Volume: 2.14M
May 14, 2021 4:00p
P/E Ratio
14.43
Dividend Yield
3.45%
Market Cap
$16.35 billion
Rev. per Employee
$3.19M
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/zigman2/quotes/205918244/composite
US : U.S.: NYSE Arca
$ 123.45
+0.62 +0.50%
Volume: 6.59M
May 14, 2021 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,173.85
+61.35 +1.49%
Volume: 1.91B
May 14, 2021 5:02p
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