Cardinal Health may acquire Medtronic’s medical supply business for $6B: 5 key notes

Cardinal Health is in talks to buy Medtronic’s medical supplies business for $6 billion, according to a CNBC report.

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Here are five key notes:

1. Medtronic inherited most of its medical supplies business in 2014 when the company acquired Covidien for $42.9 billion. The sale would likely streamline integration of the two companies.

2. Cardinal Health is reportedly in “exclusive talks” with Medtronic about acquiring the business, and CNBC reported a deal could be reached this month.

3. If the two companies are able to reach a deal, the purchase would boost Cardinal Health’s efforts to build its medical products business; the company acquired Cordis from Johnson & Johnson in 2015 in an attempt to add to its portfolio.

4. The medical products business of Cardinal Health is on track to reach mid- to high-single digit revenue growth, according to the report.

5. Neither Medtronic nor Cardinal Health commented in the report, and the deal could still fall through.

 

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