Cardinal Health to Buy AccessClosure

Dublin, Ireland-based Cardinal Health Inc. has agreed to acquire Santa Clara, Calif.-based AccessClosure Inc. for $320 million. AccessClosure is a manufacturer and distributor of extravascular closure devices in the United States with $80 million in annual sales. One of its prominent offerings is the Mynx suite of patient-friendly vascular closure devices. Pending regulatory clearance, the deal is expected to close in June.

Following the announcement, shares of Cardinal Health escalated 1.5 percent to close at $71.31 yesterday. The acquisition is expected to be completed by early June this year and it is not going to have a material impact on the company’s earnings in fiscal 2014 but modestly accretive to the same in fiscal 2015.

AccessClosure’s Mynx is a clinically proven product helpful in sealing the femoral artery using a sealant that dissolves within a month, purportedly leaving no marks of a healed artery. It also helps patients to ambulate safely within a short time, meaning they could return home very soon.

Cardinal Health posted adjusted earnings per share of 90 cents for the second quarter of fiscal 2014, which surpassed the Zacks Consensus Estimate by 7 cents but fell short of the year-ago level of 93 cents by 3.2 percent due to lower revenues.

Revenues in the quarter went down about 12 percent to $22,240 million, due to lower revenues from the pharmaceutical segment. Nevertheless, the top line beat the Zacks Consensus Estimate of $20,782 million.

Cardinal Health is focused on making healthcare more cost effective.

AccessClosure makes devices for the cardiovascular and peripheral vascular markets.