Before Monday’s opening bell, Cardinal Health (CAH ) announced that it has agreed to buy Johnson & Johnson’s (JNJ ) Cordis interventional medical devices business for $1.944 billion.
Cardinal Health will purchase the Cordis business from JNJ for $1.944 billion is cash. This transaction holds a value of approximately $1.594 billion with its tax benefits. Cardinal Health expects this transaction to benefit its FY2017 Non-GAAP EPS.
The deal is expected to be completed towards the end of 2015.
CAH’s CEO George Barrett commented:“The acquisition of Cordis is a significant step forward in our cardiovascular strategy. This acquisition follows a sequence of strategic moves for Cardinal Health in the areas of cardiology, wound management and orthopedics.”
Shares of JNJ were up 39 cents, or 0.38% during premarket trading Monday. The stock is down 1.97% YTD.
Shares of CAH were down 49 cents, or 0.56% during premarket trading Monday. The stock is up 8.99% YTD.
The Bottom Line
Cardinal Health (CAH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Johnson & Johnson (JNJ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
