BECTON, DICKINSON COMPLETES ACQUISITION OF C.R. BARD
Becton, Dickinson (BD) has completed the acquisition of C.R. Bard, creating a new healthcare company with approximately $16 billion in annualized revenue.
Vincent A Forlenza, chairman and CEO, said the combined company builds on BD’s position in medication management and infection prevention with an expanded offering of solutions across the care continuum. With Bard’s current products and pipeline, he said BD hopes to increase opportunities in fast-growing clinical areas, enhancing growth opportunities for the combined company in non-US markets.
“Today is a historic day for BD as we welcome Bard and its 16,000 associates to BD,” Forlenza, said. “These companies each have a legacy of more than 100 years of advancing the world of health and supporting those on the frontlines of health care.”
Under the terms of the transaction, Bard became a wholly owned subsidiary of BD, and each outstanding share of Bard common stock was converted to the right to receive $222.93 in cash without interest and 0.5077 of a share of BD common stock. As a result of the completion of the acquisition, Bard shares will cease trading and will be delisted from the New York Stock Exchange.
Excluding transaction-related expenses, BD does not expect the acquisition to have a material effect on the company’s financial results in the first quarter of fiscal 2018, which ended Dec. 31, 2017.
Forlenza said the company continues to expect the transaction to generate low-single digit accretion to adjusted earnings per share in fiscal year 2018, and high-single digit accretion in fiscal year 2019. The company will provide an update to its full fiscal year 2018 outlook on its first fiscal quarter earnings conference call to reflect the anticipated contribution from Bard’s operations through BD’s fiscal year, which ends Sept. 30.
Beginning with the second quarter of fiscal 2018, BD will report a new Interventional segment structure, which will include a majority of Bard offerings, with the remainder being reported under the Medical segment. VTN
BD’s acquisition of C.R. Bard is one of the many recent large acquisitions in the medical device industry in the United States, including Abbott Laboratories’ acquisition of St. Jude Medical, Medtronic’s acquisition of Covidien, and Zimmer’s acquisition of Biomet to form Zimmer Biomet Holdings.
Analyst Sarah Collins said that these acquisitions are aimed at providing a comprehensive product portfolio to customers at more reasonable costs and enhanced efficiency. “With changing industry dynamics, we’re witnessing customer consolidation with a large number of hospital mergers. So most medical device companies’ recent growth strategies are aimed at providing better, more comprehensive solutions to customers at lower costs.
“BD acquired CareFusion in 2015. The deal positioned BD as the leader in medication management industry. With the acquisition of C.R. Bard, BD aims to further strengthen its market position and add Bard devices across its oncology and surgery product portfolio. The deal will further enhance its medication management and infection prevention business, accelerating its growth strategy.” VTN