Dublin, Ireland-based Medtronic sold various monitoring and recovery products to Dublin, Ohio-based Cardinal Health to promote better company portfolio management, according to the Star Tribune.
Here are six things to know:
1. The transaction will close in the second quarter of fiscal year 2018.
2. The entities Medtronic is selling generated roughly $2.4 billion in revenue over Medtronic's last four quarters.
3. Medtronic has sought to divest lower-tech medical technology products acquired in its January 2015 merger with Dublin, Ireland-based Covidien over the last few months.
4. The transaction includes 17 manufacturing facilities and analysts expect it to net Medtronic $6.1 billion before taxes.
5. Divested product lines include dental/animal health, chart paper, wound care, incontinence, electrodes and more.
6. Medtronic reportedly plans to use $1 billion of the transaction's proceeds to repurchase shares in FY 2018 and reduce its debt.
Medtronic CEO Omar Ishrak said to the Star Tribune, "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… At the same time, we can put these proceeds to work, investing over the long-term in higher returning internal and external opportunities."
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