Cardinal Health weighs sale of nuclear medicine arm

Cardinal Health is exploring the sale of its nuclear medicine business, with private equity firms mulling offers, in a deal that could fetch around $1 billion, Bloomberg reports.

Why it's the BFD: Corporate carve-outs will likely yield the most new deal flow as sponsors hold off on auctioning their platforms until market conditions improve.

Details: The Dublin, Ohio-based drug distributor has hired advisers to gauge interest in the unit, Bloomberg says, citing sources.

• The report adds that a final decision has not been made and Cardinal could elect to keep it.

Catch up fast: Cardinal Health announced a strategic review last September after activist investor Elliott Investment Management took a stake in the company. The hedge fund's head of corporate engagement, Steven Barg, took a seat on the company's board.

• Cardinal Health, a major distributor of pharmaceuticals and medical products, settled lawsuits last year regarding allegations that it supplied excessive amounts of opioids to American communities.

Be smart: Any sponsor pursuing a deal with a price tag that starts with the letter "B" needs quite a bit of leverage to get over the finish line, at a time when not much of it is available.

The intrigue: Alongside its distribution business, Cardinal Health also provides data and technology solutions for health care providers.

• Back in September, CNBC highlighted the company's Cardinal Health at-Home Solutions business line as another unit ripe for takeout.
• Cardinal declined to comment to Axios.