Cardinal Health in talks to acquire Medtronic’s division with two Mexican plants
U.S. health care services company Cardinal Health is nearing a deal to acquire medical devices manufacturer Medtronic’s medical supplies business for close to US$ 6 billion, people familiar with the matter told Reuters on recent days.
Based in Dublin, Ohio, Cardinal Health specializes in distribution of pharmaceuticals and medical products.
“Medtronic and Cardinal Health have entered into exclusive talks over the sale of the business, and a deal could be announced later this month,” Reuters said, cautioning that there was always a chance that the negotiations could end unsuccessfully. Medtronic and Cardinal Health officials declined to comment on the report.
Medtronic operates two manufacturing facilities in Mexico, located in Tijuana, Baja California and Empalme, Sonora, which employ more than 2,500 workers, according to official company data.
For Cardinal Health, the deal would boost efforts to build out its medical products business, which it has highlighted as a priority for deal making.
In 2015, Cardinal Health acquired Cordis business from Johnson & Johnson, a manufacturing division of cardiology and endovascular devices with a production facility in Juarez, Chihuahua, which employs around 1,800 workers.
The transaction for around US$ 1.944 billion in cash, added a portfolio of devices including catheters, filters and stents.