J&J Accepts Cardinal Health Offer for Heart Business

Johnson & Johnson said Thursday that it has formally accepted Cardinal Health Inc.'s March offer to buy its heart-product business for about $1.94 billion in cash.

J&J said it accepted the offer after consulting with work councils and trade unions. The deal, subject to regulatory approvals, is expected to close near the end of the year.

The deal will add stents and catheters to the list of products Cardinal offers to hospitals, physicians and ambulatory centers.

The business, Cordis, focuses on less-invasive treatments for vascular disease. Cordis had $780 million in sales in 2014, with about 70% coming from outside the U.S.

The deal comes as Cardinal, a drug wholesaler that also makes gloves and surgical apparel, works to expand its portfolio of medical products as hospitals merge and consolidate.

J&J, meanwhile, has been working to pare its wide-ranging portfolio to focus on higher-growth businesses and reduce costs. J&J, a pioneer in stents that prop open clogged heart arteries, said years ago that it would get out of that business.

Write to Chelsey Dulaney at [e-mail]

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