Cardinal Health is in exclusive talks to acquire the medical supplies business of Medtronic for $6 billion, sources told Reuters on April 5.
Those talks could result in a deal being finalized and announced later this month, though the same sources told Reuters it’s possible negotiations could end without any agreement.
Much of Medtronic’s business selling syringes, catheters, surgical instruments and other supplies came from its $50 billion purchase of Covidien in 2015. Bloomberg had reported earlier this year that Medtronic was shopping around the supplies unit with an expected value of around $5 billion, with the business’s earnings before interest, taxes, depreciation and amortization hovering around $500 million.
If Cardinal Health ends up being the buyer, the company would be expanding its supplies business following its 2015 acquisition of Johnson & Johnson’s Cordis portfolio, which included catheters, guidewires, vena cava filters, biliary stents and other devices.
Both Cardinal and Medtronic declined to comment to Reuters about the rumored sale.