US-based health care services firm Cardinal Health has agreed to divest its Cordis business to Hellman & Friedman (H&F) for about $1bn.

Cordis is a developer and manufacturer of interventional vascular technology. The company provides offers cardiovascular products, endovascular products and biliary stent products.

The transaction includes the buyer’s assumption of certain liabilities as well as the seller’s retention of certain working capital accounts.

Cardinal Health CEO Mike Kaufmann said: “Cordis has a long history of innovation in minimally-invasive cardiovascular technology, and we are confident that with H&F as its owner, Cordis will be well-positioned for growth, innovation and success.

“Cardinal Health and H&F have a shared passion for delivering high-quality medical products to customers and we are excited about the future for the Cordis business under H&F’s ownership.”

Upon closing of the transaction, the majority of assets and liabilities of the Cordis business will be transferred to H&F.

Meanwhile, Cardinal Health will hold full authority for lawsuits related to inferior vena cava filters in the US and Canada, as well as liability related to these matters.

The health care services firm expects that the sale of the Cordis business will decrease Medical segment profit by about $60m to $70m on an annual run-rate basis.

Kaufmann continued: “Our decision to divest Cordis demonstrates our disciplined approach to evaluating our portfolio and focusing our resources in our strategic growth areas where we are an advantaged owner.

“Looking forward, we remain committed to our medical distribution and global medical products businesses.”

Subject to customary closing conditions and regulatory clearances, the transaction is anticipated to be completed in the first half of Cardinal Health’s fiscal year 2022.

H&F partner Hunter Philbrick said: “Cordis is an excellent fit with our philosophy of investing in great businesses as a market-leading cardiovascular device manufacturer known for high-quality products, strong physician satisfaction and superb patient outcomes.

“We are excited to invest in the talented Cordis, Ajax and Zeus teams to drive industry leadership, therapeutic innovation and improved patient experiences.”

J.P. Morgan Securities is acting as exclusive financial advisor to Cardinal Health for the transaction, while Skadden, Arps, Slate, Meagher & Flom served as the legal advisor for the company.

UBS Investment Bank acted as the sole financial advisor to H&F, while Kirkland & Ellis is providing legal services to the firm.