Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Merger or Acquisition (April 2017)
12 slides from Cardinal Health's merger presentation, Apr 18, 2017
Slide 1: Cardinal Health to Acquire a Leading Patient Product Portfolio from Medtronic plc
Cardinal Health to Acquire a Leading Patient Product Portfolio from Medtronic plc April 18, 2017 © Copyright 2017, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 2: Forward-looking statements and GAAP reconciliation
Forward-looking statements and GAAP reconciliation Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing Cardinal Health’s plans to acquire Medtronic’s Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses and other stat
Slide 3: Agenda
Agenda • At a glance • Strategic rationale • Business and product overview • Acquisition mechanics and financials • Summary 3 © Copyright 2017, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 4: At a glance: Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses
At a glance: Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses Revenue ~$2.3B1 Overview By Product Line • Highly complementary, leading product portfolio with 23 product categories across Other Incontinence multiple market settings • >70% of revenues in U.S. in addition to
Slide 5: Strategic rationale
Strategic rationale • Excellent fit with key product lines and strategies ‒ Expands product breadth and reputation: leadership in numerous categories with great brands ‒ Enhances existing portfolio: acute care solutions ‒ Increases scale: medical products manufacturing and sourcing ‒ Builds on geogr
Slide 6: Business and product overview: A portfolio of strong, well-respected brands
Business and product overview: A portfolio of strong, well-respected brands Open suction, cardiothoracic ArgyleTM drainage, catheters Bandages, dressings, underpads, adult briefs, protective underwear Foam positioners, delivery kits, OR essentials Urology, collection systems Enteral feeding pumps, s
Slide 7: Patient Recovery products span the continuum of care
Patient Recovery products span the continuum of care Operating Room Recovery Floor Long-Term Care Key Brands OR products ArgyleTM Traditional wound care and incontinence* OR products Urology Enteral feeding Compression devices and stockings Electrodes Sharps disposal and needles and syringes * Kenda
Slide 8: Acquisition mechanics and financials
Acquisition mechanics and financials1 • Cardinal Health is acquiring Medtronic’s Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses for $6.1B in cash. The $6.1B does not include expected cash tax benefits of at least $100M • Expect at least $0.21 accretion to Non-GAAP earnin
Slide 9: Acquisition mechanics and financials
Acquisition mechanics and financials1 • New debt offering to fund $4.5B of purchase price; Spring/Summer 2017 • Expect adjusted debt / Non-GAAP EBITDA2 ratio to be slightly greater than 2.0x by end of FY20 • Transition and reverse transition service agreements • Transition and reverse transition man
Slide 10: Summary
Summary • Aligns with Cardinal Health enterprise strategy • Brings highly complementary product line • Provides predictable, stable earnings and cash flow • For the Medical Segment, provides ‒ Economies of scale in medical products manufacturing and sourcing ‒ Increased product breadth across the co
Slide 11: Cardinal Health brings scaled solutions that help our customers thrive
For those tasked with navigating the complexities of healthcare… Cardinal Health brings scaled solutions that help our customers thrive in a changing world. 11 © Copyright 2017, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 12: Appendix: Non-GAAP Financial Measures and Description of Tax Benefits
Appendix: Non-GAAP Financial Measures and Description of Tax Benefits Non-GAAP Financial Measures Cardinal Health presents Non-GAAP diluted earnings per share from continuing operations and Non-GAAP EBITDA on a forward- looking basis. The most directly comparable forward-looking GAAP measures are di