BD acquires CareFusion for US$12.2bn

Healthcare company CareFusion has been acquired by Becton, Dickinson and Company (BD), a medical supplies and surgical instruments manufacturer, for $58 per share in cash and stock - a total of $12.2 billion. It is said that the combination of the companies’ complementary product portfolios will offer integrated medication management solutions and smart devices: from drug preparation in the pharmacy, to dispensing on the hospital floor, administration to the patient and subsequent monitoring.

“BD’s acquisition of CareFusion 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 worldwide infrastructure,” said BD Chairman, CEO and President Vincent A Forlenza.

“With the targeted cost savings we have identified and the growth opportunities we see in bringing CareFusion products to more patients and healthcare workers around the world, we expect this transaction to create meaningful value for our shareholders, customers, employees and other stakeholders.”

CareFusion Chairman and CEO Kieran T Gallahue said the transaction “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”. Being part of BD will provide the company with new opportunities, he said, “as part of what will become one of the largest, global leaders in medtech”.

According to Premdharan Meyyan, an analyst with research and consulting firm GlobalData, the agreement will also result in strong cashflow generation and returns on investment capital. He noted that while BD has historically focused on product development, the deal reflects the company’s increasing interest in healthcare innovation - and by closing deals with smaller businesses that are developing innovative technologies, BD is expected to continue seizing significant overall market share in the drug management space.

The transaction, which is subject to regulatory and CareFusion shareholder approvals and customary closing conditions, is expected to close in the first half of 2015.

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