Cardinal Health To Buy Johnson & Johnson's Cordis Business For Nearly $2 Billion

Cardinal Health announced on Monday plans to buy Johnson & Johnson's Cordis business, which makes cardiology and endovascular devices, for $1.94 billion in cash. If the deal closes as expected towards the end of this year, Cardinal expects it to add 20 cents a share to adjusted earnings in fiscal 2017. Cardinal plans to finance the deal with $1 billion in new debt and existing cash. "With an aging population and the accompanying demand for less invasive medical treatments, health systems around the world are searching for the best way to bring quality care to their patients in the most cost-effective way," said Cardinal Chief Executive George Barrett. The stock, which wasn't active in premarket trade, has gained 7.1% in the past three months, while the S&P 500 has advanced 1.8%. Johnson & Johnson's stock has lost 5.5% in the past three months.