Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Merger or Acquisition (March 2015)
13 slides from Cardinal Health's merger presentation, Mar 2, 2015
Slide 1: Cardinal Health To Acquire Cordis, A Leading Cardiology and Endovascular Company
Cardinal Health To Acquire Cordis, A Leading Cardiology and Endovascular Company March 2, 2015 © Copyright 2015, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Slide 2: Forward-looking statements and GAAP reconciliation
Forward-looking statements and GAAP reconciliation This presentation contains forward-looking statements addressing Cardinal Health’s plans to acquire Cordis and other statements about future expectations, prospects, estimates and other matters that are dependent upon future events or developments.
Slide 3: Strategic rationale
Strategic rationale Significant step forward in our strategy to address a major pain point in many health systems today -- physician preference items (PPI) Cardiology, wound management, orthopedics Aligns closely with our priorities and will serve to accelerate key growth driver in our portfolio: In
Slide 4: Each organization brings substantial assets to the table
Each organization brings substantial assets to the table • Early innovator responsible for several key breakthroughs in cardiology and endovascular (EV) minimally invasive procedures Why • Unique asset in cardiovascular space in both product reach and scale, and Cordis? with extensive global footpri
Slide 5: Cardinal Health and Cordis: What this means for us and the marketplace
Cardinal Health and Cordis: What this means for us and the marketplace • Addresses PPI – a major system pain point Compelling • Broad product offering – will deliver value through an innovative value approach to price, mix and product efficiency proposition • Well-deserved reputation for product qua
Slide 6: Acquisition supports our Physician Preference Item (PPI) strategy
Acquisition supports our Physician Preference Item (PPI) strategy • Major marketplace shifts have created new opportunities to serve a growing customer need and accelerate a significant growth engine in PPI • We have a unique combination of customer access, clinical capabilities, and supply chain as
Slide 7: A financially compelling acquisition
A financially compelling acquisition1 Business to be acquired for $1.944B in cash; ~$1.6B net of the present value of tax benefits (~$350M) Expect to be significantly accretive to Medical Segment margin rates Expect greater than $0.20 in non-GAAP EPS accretion in FY17 (first full fiscal year post-cl
Slide 8: Mechanics of transaction close
Mechanics of transaction close Transaction expected to close by end of calendar 2015 Binding offer in place until Works Council consultative processes completed in France and Germany; expect binding agreement thereafter Overall deal closes once applicable closing conditions met in approximately 20 p
Slide 9: Cordis: at a glance
Cordis: at a glance U.S. largest single market; ~70% revenues outside the U.S. Calendar 2014 sales of ~$780M Excellent growth platform in a large channel 25-year outstanding reputation for quality / product consistency Experienced salesforce / management team with proven track record Approximately 3
Slide 10: Cordis's product portfolio
Cordis’s product portfolio Cardiology Sheath – tube inserted into the body to provide access point for insertion of other instruments into an artery Wires / Guides – instruments that assist in guiding catheters, balloons, and stents into place Dx Cath – hollow tube inserted into arteries for the pur
Slide 11: Cordis expands our global presence
Cordis expands our global presence1 Scandinavia Canada UK, Russia CEE countries Korea Ireland Europe U.S. Japan Malta MEA India China Mexico countries Puerto Rico Thailand Dominican Republic Malaysia Singapore Brazil Australia S. Africa CAH commercial operations CAH manufacturing / sourcing operatio
Slide 12: In summary: scale and strategic fit
In summary: scale and strategic fit • Cordis represents a unique opportunity to accelerate our PPI • Major move in cardiovascular space; complementary to AccessClosure • Will fill out our portfolio, brings global commercial capabilities and immediately makes us a leader in this space • The scale, pr
Slide 13: Appendix: Non-GAAP Definition, GAAP Reconciliation and Tax Benefit Description
Appendix: Non-GAAP Definition, GAAP Reconciliation and Tax Benefit Description Non-GAAP Definition Non-GAAP diluted earnings per share from continuing operations: (A) earnings from continuing operations, excluding (1) restructuring and employee severance, (2) amortization and acquisition-related cos