Table of Contents
DUBLIN, Ohio — Cardinal Health has completed its acquisition of Johnson & Johnson’s Cordis cardiology and endovascular device business for $1.944 billion.
Cardinal said Sunday evening that the integration of Cordis off to a strong start, with management teams in place worldwide. The company noted that planning has been ongoing since the deal was announced in March.
Cordis had 2014 sales of about $780 million, split almost evenly between cardiology and endovascular products, Cardinal reported.
Though the United States is Cordis’ largest single market, 70% of its sales come from outside the U.S. Cordis’ international presence includes operations in China, Japan, Germany, Italy, France, the United Kingdom, and Brazil, among others.
With the addition of Cordis, Cardinal boosts its portfolio of physician preference items, including products in the cardiovascular, wound management and orthopedics areas. Cardinal said Cordis helps customers standardize around medical devices offers solutions in supply chain management, inventory optimization and workflow tools and data to support the effective management of patient care.
Cardinal noted that in tandem with Cordis it will now be able to provide high-quality, daily-use products; reliable, trackable inventory and logistics; and deep analytics capabilities — covering the “entire episode of care,” which will grow in importance as value-based payment models take hold in the health care arena.
Plans call for Cordis products to continue to be sold under the Cordis brand name but with a logo that identifies Cordis as a Cardinal Health company.
“I’m extremely pleased to welcome our new Cordis colleagues to Cardinal Health,” George Barrett, chairman and chief executive officer of Cardinal Health, said in a statement. “With an aging population and the accompanying demand for less invasive medical treatments, health systems around the world are searching for the best ways to ensure the highest quality care in the most cost-effective way.”
David Wilson stays as Cordis worldwide president, and other executives are in place across all functions and regions, including the Cordis team in the San Francisco Bay Area, which will remain, according to Cardinal. Global headquarters and a Europe/Middle East/Africa hub have been set up in Zug, Switzerland. Singapore will serve as the Asia-Pacific hub, and Puerto Rico will serve as the Latin America hub.
Cardinal expects to have added about 3,000 employees when all integration work and transitions are completed over the next few years. The business will report to Don Casey, Cardinal’s medical segment CEO. A medical device industry veteran, Casey is a former Johnson & Johnson executive.
“We are extremely excited to welcome this team, with its deep knowledge, strong customer and distributor relationships, commitment to patients, and innovative spirit, to the Cardinal Health family,” Casey commented.
