NEW YORK (The Deal) -- Dublin, Ohio-based Cardinal Health (CAH) - Get Cardinal Health, Inc. Report announced on Monday that it would acquireJohnson & Johnson's (JNJ) - Get Johnson & Johnson (JNJ) Report cardiac device business Cordis for $1.94 billion in cash.

New Brunswick, N.J.-based Johnson & Johnson announced that it would sell the business -- which develops and manufactures interventional vascular technology--for $1.94 billion in cash plus $46 million of retained debt, via receivables. The business had 2014 annual sales of $780 million, split about evenly between its cardiology and endovascular products, with operations in over 50 countries.

Johnson & Johnson was shopping the Fremont, Calif.-based business starting last summer, according to multiple reports. Representatives for Cardinal and Johnson & Johnson declined to provide further details on an auction process.

The purchase is expected to be financed with a combination of $1 billion in new senior unsecured notes and the rest in cash. Cardinal secured a $1 billion bridge loan from Goldman Sachs Bank USA to finance the deal. It is expected to close towards the end of 2015, according to a statement by Cardinal.

Cardinal Health provides logistics and other services to health care providers, pharmacies and suppliers and manufacturers. The company, which spun off from CareFusion in 2009, also manufactures medical and surgical products such as gloves, surgical apparel and fluid management products.

Johnson & Johnson has been trimming its vast portfolio, seeking to concentrate on higher growth businesses, industry analysts have noted. Last year, in March, the company sold its Ortho Clinical Diagnostics unit to private equity house Carlyle Group. The sale of the blood screening and diagnostics company yielded more than $4 billion.

Cardinal Health has also been active in M&A. Last April it acquired privately held cardiovascular medical device maker AccessClosure for $320 million in cash. At the time analysts reported expecting more deals from the medical device company.

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Cardinal Health expects the Cordis acquisition to be increasingly accretive with annual synergies that will exceed $100 million by the end of 2018. In fiscal 2017 -- the first full year after the closing of the deal -- the transaction is expected to have accretion greater than 20 cents in non-GAAP diluted earnings.

Johnson & Johnson still owns Biosense Webster which specializes in the electrophysiology business market including cardiac mapping, ultrasound catheters and atrial flutter solutions.

Cordis and Johnson & Johnson retained Robbie Huffines and Chris Martell at JP Morgan Securities as their financial adviser. The companies retained a team at Cravath, Swaine & Moore including Robert Townsend III, Damien Zoubek, Eric Hilfers, David Kappos, senior attorney Jarrett Hoffman, and associates Nicholas Dorsey, Adam Gross, Matthew Bobby and Nicholas Jackson and a team at Baker and McKenzie including Jonathan Stevens. For antitrust issues, the companies retained Weil, Gotshal & Manges including Steven Newborn, Steven Bernstein, Vadim Brusser and Benjamin Bauer.

Cardinal Health retained Peter van der Goes at Goldman Sachs as its financial adviser. The company hired a team at Wachtell, Lipton, Rosen and Katz including David Katz and David Lam as well as a team at Jones Day including Ish Alsheik, Tim Melton, Tricia Eschbach-Hall, Michael Ferrell, Christian Fulda, Tim Heverin, Kristen Pollock McDonald, Mauricio Paez, Paula Quist, Steven Sozio, Pam Taylor and Peter Thurlow. Cardinal used its in-house counsel including Steve Falk and Patrick Belville for further legal advice.

— David Marcus contributed to this report.

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