Less than six weeks after making the announcement that it was to acquire AccessClosure, Cardinal Health has now seen the deal completed, marking the start of its Interventional Vascular journey. The $320 million acquisition was an all-cash transaction.
Background
Back in April Cardinal Health announced its acquisition of AccessClosure, a leading manufacturer and distributor of extravascular closure devices in the United States. We covered the news here, observing that a foray into interventional cardiology was quite a departure for a company more often associated with kitting out pharmacies, hospitals, ambulatory surgery centers, clinical laboratories and physician offices.
What the acquisition does show is that Cardinal Health has recognised a couple of things: Firstly, there’s a better future for devices that are patient centered, with a greater potential for margin retention than there is in the infrastructure-type deal that have characterized its business to date. Secondly, and cleverly, the company is cherry picking those specialties that remain filled with potential. Last year it was orthopedic trauma. Now interventional vascular, where Cardinal’s stated intent is to build a portfolio of offerings.
AccessClosure, based in Santa Clara, Calif., has annual sales of more than $80 million, driven by a direct sales force. The company’s Mynx™ family of vascular closure devices is clinically proven and patient-friendly.
Cardinal Health says it expects the transaction to have minimal impact on non-GAAP earnings in fiscal year 2014 and to be slightly accretive to non-GAAP earnings in fiscal 2015. Financial results of AccessClosure will be reported as part of the Medical segment.
Company comments
“We’re excited about the AccessClosure acquisition, because it’s another great example of innovating to provide solutions and cost savings to the health care industry,” said Don Casey, CEO of Cardinal Health’s Medical Segment. “This acquisition is aligned to the company’s targeted growth areas, and we’re looking forward to similar opportunities for further expansion.”
Source: Cardinal Health, Inc., PR Newswire