Johnson & Johnson (J&J) has accepted a binding offer from Cardinal Health to acquire its Cordis business for approximately $2bn.
First announced by Cardinal in March 2015, the offer comprises $1.944bn of cash proceeds from Cardinal and $46m of retained net receivables.
J&J held consultations with the relevant works councils and trade unions before accepting the offer.
Headquartered in Fremont, California, US, Cordis develops and markets cardiology and endovascular products, as well as transhepatic biliary stents.
The business, which reported annual sales of $780m in 2014, carries out operations in 50 countries, including China, Japan, Germany, Italy, France, the UK and Brazil.
Subject to regulatory clearances and other customary closing conditions, the transaction is expected to be completed in the US and key non-US countries by the end of 2015.
Cardinal said in its March announcement that the acquisition of Cordis was a significant step forward in its cardiovascular strategy.
The acquisition of Cordis is claimed to complement the company's strategy of expanding operations in the areas of cardiology, wound management and orthopaedics.
Operational in more than 50 countries worldwide, Cardinal Health develops and markets medical and surgical products, including gloves, surgical apparel and fluid management products.
Image: Johnson & Johnson (J&J) accepts Cardinal Health's binding offer to acquire its Cordis business for $2bn. Photo: courtesy of user:ekem.