NEW YORK (360Dx) – Becton Dickinson said today that it has entered into an agreement to acquire CR Bard, a medical technology firm operating in the fields of vascular, urology, oncology, and surgical specialty products, for $317.00 per share in cash and stock, for a total price of $24 billion. The firms’ boards of directors have approved the agreement.
The combination will create “a highly differentiated medical technology company positioned to improve both the process of care and the treatment of disease for patients and healthcare providers,” the firms said.
They noted that the transaction will build on BD's leadership position in medication management and infection prevention, and that Bard's strong product portfolio and innovation pipeline “will increase BD's opportunities in fast-growing clinical areas.” They said that the combined company will also “enhance growth opportunities” in non-US markets.
Vince Forlenza, BD's chairman and chief executive officer, said in a statement that acquiring Bard “will accelerate our ability to offer more comprehensive, clinically relevant solutions to customers and patients around the globe. ”
Tim Ring, Bard's chairman and chief executive officer, said that it sees opportunities to “leverage BD's leadership, especially in medication management and infection prevention.”
Bard will expand BD's focus on the treatment of disease states beyond diabetes to include peripheral vascular disease, urology, hernia, and cancer, the firms said, adding that the combined company will have a large and growing presence in emerging markets, including $1 billion in annual revenue in China.
The firms noted that the transaction will be immediately accretive and is expected to generate high-single digit accretion to BD’s adjusted EPS in fiscal year 2019, when BD also expects to benefit from revenue synergies.
BD and Bard said the combined company is expected to generate about $300 million in cost synergies by fiscal 2020.
The deal is expected to close in the fall.
Bard shareholders are entitled to receive about $222.93 in cash and .5077 shares of BD stock per Bard share. At closing, Bard shareholders will own approximately 15 percent of the combined company, and receive $8 billion of BD common stock.
BD expects to contribute approximately $1.7 billion of available cash to fund the transaction, and, subject to market conditions, around $10 billion of new debt and about $4.5 billion of equity and equity-linked securities, the firms said.
BD shares fell about 4 percent to $178.82 in morning trading on the New York Stock Exchange. Bard shares, which also are traded on the NYSE, were up about 20 percent to $303.70.