Medical products maker CareFusion said Monday it will buy GE Healthcare's Vital Signs unit for $500 million in a deal that expands its manufacturing capacity and nearly doubles the revenue of its specialty disposable products business.

CareFusion said the Vital Signs business has about $250 million in annual revenue. It makes disposable products used in respiratory care and anesthesiology, as well as temperature management and monitoring devices. San Diego-based CareFusion said the acquisition will help expand its international business, as about one-third of its revenue will come from markets outside the U.S. after the deal is complete. The company also said the purchase will help change its specialty disposables unit from a distributor of products into a manufacturer.

CareFusion reported $283 million in specialty disposables revenue in its latest fiscal year, up 6 percent from the year before. Its total revenue declined 1 percent to $3.55 billion.

The deal is expected to close by the end of the year.

Headquartered in Totowa, N.J., Vital Signs has more than 1,000 employees in three main locations, including manufacturing operations in China.

CareFusion Corp. said the deal will add 5 to 8 cents per share to its adjusted net income in its next fiscal year, which starts on July 1.

Shares of CareFusion slipped 47 cents to $38.72 in morning trading. General Electric Co. shares added 17 cents to 427.37.