Medtronic PLC is selling a large portion of its business in patient monitoring and recovery products to Ohio-based Cardinal Health Inc. for $6.1 billion.
The transaction, which is expected to close in the second quarter of Medtronic’s fiscal year 2018, lets it focus on higher-tech devices like pacemakers and heart defibrillators that have been its historical focus.
Medtronic acquired the medical technology products in its January 2015 merger with Covidien PLC.
The businesses being sold generated approximately $2.4 billion in revenue over the last four reported quarters, Medtronic said. Cardinal Health said the deal would shift 23 product categories and more than 10,000 employees.
“These products — while truly meaningful to patients in need — are best suited under ownership that can provide the investment and focus that these businesses require,” Omar Ishrak, Medtronic’s chief executive, said in a statement. “At the same time, we can put these proceeds to work, investing over the long-term in higher returning internal and external opportunities.”
Based in Ireland, Medtronic has its operational headquarters in Fridley and has large businesses selling heart devices, insulin pumps and products used in spine surgeries.
With headquarters in Dublin, Ohio, Cardinal Health sells a variety of medical products to hospitals, health systems and other clinical entities worldwide.