On Monday, United States pharmaceutical and medical equipment maker Johnson & Johnson announced that it will sell its Cordis vascular technology unit to Cardinal Health, health care services company based in Dublin, for $1.99 billion. The deal confirms the pharmaceutical and consumer packaged goods manufacturer's exit from the cardiovascular stent business.

According to reports, the deal consists of $1.944 billion of cash proceeds from Cardinal Health and about $46 million of retained net receivables. Currently, the Fortune 500 health care services company has been expanding its medical equipment offerings for doctors. Net revenue of Cordis in 2014 was about $780 million.

While confirming the deal, Gary Pruden, Worldwide Chairman, Global Surgery Group, Johnson & Johnson, said that the deal is a part of the company's current portfolio management approach to focus on opportunities to help patients. "Cordis has made significant contributions to the field of cardiovascular care, and we believe the business has a promising future with Cardinal Health. We are grateful for the many contributions that Cordis employees have made over the years", Pruden added.

According to the reports, the deal's acceptance period will end after May, 2015. After the offer is accepted, the transaction will be closed towards the end of the year. The reports also stated that the company has decided to discuss the transaction on April 14, 2015, during its quarterly earnings call.

Cardinal said that the deal will slightly hamper earnings in the fiscal year that is going to end on June 2016. The deal is expected to boost the company's earnings by about 20% per share in the fiscal year ending on June 30, 2017.

George Barrett, chief executive of Cardinal Health, said that the company has been planning to make acquisitions in cardiology and endovascular treatment and in wound care segment.