BD’s acquisition of CareFusion for $12.2 billion creates global leader in medical technology

Becton, Dickinson and Company (BD), a global medical technology company, hasannounced that it will acquire CareFusion for $12.2 billion in cash and stock.

The companies in a joint press release said the sale will result in BD becoming a global leader in medication management and patient safety solutions.

The acquisition “allows us to align our highly complementary technologies and products to address unmet needs in the growing $20 billion global medication management industry, which leverages BD’s world-wide infrastructure,” said Vincent A. Forlenza, BD’s chairman, chief executive officer and president.

“It accelerates BD’s transition from a product-focused company to a customer-centric provider of innovative healthcare solutions with leading scale across the medication management value chain and expanded solutions for patient safety.”

Kieran T. Gallahue, CareFusion chairman and chief executive officer, said the sale opens up new growth opportunities in global markets.

“The transaction delivers attractive value for CareFusion shareholders, and represents a powerful endorsement of our strong positions in medication management, informatics across our device platforms and leading products to help improve the effectiveness of acute-care procedures,” said Gallahue in a press release.

 READ: 2013 health sector deals

BD posted revenue of $8.13 billion in 2013, worth $5.81 per share, according to the company’s 2013 annual report. CareFusion’s revenue for 2013 was $3.55 billion, a 1% decline on both a reported and constant currency basis, according to the company.

CareFusion has 16,650 employees worldwide, according to it website, and offers products in the areas of infection prevention, anesthesia delivery, respiratory care, patient monitoring, supply management, integrated analytics solutions, surgical instruments, interventional procedures, and medication management.

BD has 30,000 associates in 50 countries. It develops, manufactures and sells medical supplies, devices, laboratory instruments, antibodies, reagents and diagnostic products to healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public, according to its website.

CareFusion shareholders will receive $49 per share in cash and 0.0777 of a share of BD stock for each share of CareFusion, for a total of $58 per share based on BD’s closing stock price on October 3 of  $115.84.