CareFusion sells ISP unit to Medline for $130M

Fresh on the heels of announcing its next CEO, CareFusion ($CFN) has agreed to sell its International Surgical Products (ISP) distribution business to Medline Industries for approximately $130 million.

The ISP business is based in Rolle, Switzerland and has operations in 16 European and Asian-Pacific countries. The business employs more than 850 people and sells medical consumable products, such as drapes and gowns, custom procedure trays, surgeon and exam gloves and fluid management products. The business generates sales of approximately $440 million annually, CareFusion says in a release.

"The divestiture of ISP will focus CareFusion on the growth opportunities we have outside the United States for our core medical technologies and disposable products," said David Schlotterbeck, outgoing chairman and CEO of CareFusion. "Medline is an ideal fit for our global ISP employees and customers, who will benefit from the alignment with an industry leader in medical products manufacturing and distribution."

As part of the agreement, Medline will continue to distribute CareFusion products in certain geographies. The acquisition is expected to close in April.

CareFusion shares were inactive premarket and closed Thursday at $26.17. The stock is down 0.7 percent in the past year, Dow Jones reports.

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