Becton, Dickinson acquires C.R. Bard in $24B deal
Medical device giant Becton, Dickinson & Co. said Sunday it had reached a deal to acquire C.R. Bard, another medical device manufacturer, for $24 billion.
The Franklin Lakes, N.J, company, commonly referred to as BD, said the deal would improve its ability to offer products that reduce the chance of hospital-acquired infections.
C.R. Bard’s devices in vascular, urology and oncology will pair with BD’s wide-ranging lineup, including products in diagnostics, diabetes care, injection, anesthesia, pharmacy and laboratory automation.
Under the deal, BD said it expected to cut $300 million in annual costs by the fiscal year 2020.
Asked whether that would include job cuts, BD spokesman Troy Kirkpatrick said in an email, “There isn’t overlap in what we do and what Bard does, so we are confident that the transaction will create career opportunities for their talented employees as part of a global industry leader.”
The acquisition ranks as the fourth largest of the year globally and the largest in the U.S., according to Dealogic.
Together the companies have about $16 billion in annual revenue and 65,000 employees with a “presence in almost every country around the world,” according to a presentation to investors.
BD is also hoping to accelerate its international growth, including in China, where the companies have combined revenue of $1 billion.
Altogether, the combined company is projecting annual revenue growth of 5% to 6% from the 2018 through 2020 fiscal years with earnings growth in the “mid-teens” in percentage increases, according to an investor presentation.
BD said it would pay a combination of cash and stock worth $317 per share of Bard stock. C.R. Bard shares rose nearly 20% to $303.04 in late afternoon trading on Monday. BD shares declined 4% to $177.09. The companies said they expected the deal to close in fall 2017, though it would require regulatory approvals. C.R. Bard shareholders will control 15% of the combined company.