In the biggest deal of the company’s 120-year history, medical device giant Becton, Dickinson & Company has announced its acquisition of C.R. Bard for $24 billion.
The cash and stock deal will see Bard shareholders receive $222.93 in cash and 0.5077 shares of Becton Dickinson stock per Bard share, or $317 per Bard share based on Becton Dickinson’s closing price of $185.29.
The acquisition means Becton Dickinson’s portfolio, currently comprising syringes and infusion products, will be boosted with devices in the fast-growing fields of vascular medicine, urology, oncology and surgery. In a similar move, Becton Dickinson acquired CareFusion Corp two years ago for $12 billion so that the two companies could combine portfolios and offer integrated medication management solutions and smart devices.
The deal will also see the company expand its board of directors, with Bard CEO Tim Ring and another Bard director expected to join the board. Speaking of the deal, Ring said: “We are confident that this combination will deliver meaningful benefits for customers and patients, as we see opportunities to leverage Becton Dickinson’s leadership, especially in medication management and infection prevention.”
This deal follows the current trend in the medical technology sector as organisations turn to acquisitions to enhance their presence in the market and boost profit margins. This was something Vincent Forlenza, CEO of Becton Dickinson, commented on in a statement following the announcement: “We expect that this deal will cause others in the space to take a step back and ask themselves if there is an opportunity to do another large transaction and should we be acting upon it.”
The Becton Dickinson and Bard deal is expected to close in the third quarter of 2017, subject to regulatory and shareholder approvals.
Stay tuned to our blog for industry M&A analysis and remember to get in touch with our experienced team with any questions you have about the M&A process and how Benchmark International can help you.