Cardinal Health Inc. agreed to buy Johnson & Johnson’s Cordis business for $1.94 billion in cash, gaining a global manufacturer of cardiology and endovascular devices.

The acquisition will be financed with a combination of $1 billion in new senior unsecured notes and existing cash, Dublin, Ohio-based Cardinal Health said in a statement. The transaction is expected to close in the U.S. toward the end of calendar 2015.

Based in Fremont, California, Cordis had annual sales of approximately $780 million last year, split almost evenly between cardiology and endovascular products. About 70 percent of Cordis’s sales come from outside the U.S., in more than 50 countries, including China, Germany, Italy and the U.K.

Cardinal Health’s shares have increased 23 percent in the past year, outperforming the Standard & Poor’s 500 Index, which gained 13 percent.

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