C.R. Bard sold to Becton, Dickinson for $24 billion

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By Tia Lynn Ivey

managing editor

One of the world’s largest health-care suppliers, C.R. Bard Inc., has been bought for $24 billion by Becton, Dickinson & Company, another massive global medical supplier.  Bard has a medical division located in Madison.

According to both companies, the merger will create one of the most powerful medical supply chains in the world, offering customers the broadest selection of medical devices and technology. It has yet to be announced if this consolidation will affect the Madison location of C.R. Bard. 

According to Bloomberg News, “Becton, Dickinson agreed to pay $317 a share for Bard in cash and stock, or about 25 percent more than Bard’s April 21 closing price, the companies said in a statement on Sunday. Both companies’ boards have unanimously agreed to the deal.”

According to a joint press release, Brecton, Dickinson and Bard sought to consolidate companies in order to expand product lines and lower costs of services.

“[Becton, Dickinson is] adding Bard’s devices to its portfolio in the high-growth sectors of oncology and surgery,” said both companies in a joint press release.  The full press release is as follows.

“BD (Becton, Dickinson and Company) a leading global medical technology company, and C. R. Bard, Inc., a medical technology leader in the fields of vascular, urology, oncology and surgical specialty products, announced a definitive agreement under which BD will acquire Bard for $317.00 per Bard common share in cash and stock, for a total consideration of $24 billion. The agreement has been unanimously approved by the Boards of Directors of both companies.

The combination will create a highly differentiated medical technology company uniquely positioned to improve both the process of care and the treatment of disease for patients and healthcare providers. The transaction will build on BD’s leadership position in medication management and infection prevention with an expanded offering of solutions across the care continuum. Additionally, Bard’s strong product portfolio and innovation pipeline will increase BD’s opportunities in fast-growing clinical areas, and the combination will enhance growth opportunities for the combined company in non-U.S. markets.

This financially compelling transaction will be immediately accretive and is expected to generate high-single digit accretion to adjusted earnings per share (EPS) in fiscal year 2019. Approximately $300 million of estimated annual, pre-tax, run-rate cost synergies are expected by fiscal year 2020. Separately, BD also expects to benefit from revenue synergies beginning in fiscal year 2019. The transaction is expected to improve BD’s gross margins by approximately 300 basis points in fiscal year 2018, increase BD’s earnings per share growth trajectory to the mid-teens, and generate strong cash flow.

Vince Forlenza, BD’s chairman and chief executive officer, said, ‘Combining with Bard will accelerate our ability to offer more comprehensive, clinically relevant solutions to customers and patients around the globe, creating a strong partner for healthcare providers who are increasingly focused on delivering better outcomes at a lower total cost. Our two purpose-driven organizations are well-aligned strategically, sharing a strong track record of performance and a deep commitment to addressing unmet needs in today’s challenging healthcare environment. We expect the transaction to contribute meaningfully to BD’s plans for revenue growth and margin expansion, and generate outstanding value both near- and long-term for shareholders. I am excited to welcome Bard’s talented employees to our strong and dedicated team as we bring together two companies with such complementary capabilities, values and strong reputations for delivering superior results.’

Tim Ring, Bard’s chairman and chief executive officer, said, ‘We are confident that this combination will deliver meaningful benefits for customers and patients as we see opportunities to leverage BD’s leadership, especially in medication management and infection prevention. We also believe that we can expand our access to customers and patients through BD’s strategic selling capabilities, and that our fast-growing portfolio in emerging markets can significantly benefit from their well-established international commercial infrastructure. Our two companies share the conviction that a product leadership strategy focused on unmet needs and improved outcomes that provide economic value to the global healthcare system will provide long-term shareholder returns.’

John Weiland, Bard’s vice-chairman, president and chief operating officer, added, ‘BD and Bard share a common purpose with highly compatible organizations. We are very proud of the business and culture we have built over 110 years, focused on quality, integrity, innovation and service. We have long had great respect for BD and find in them a similarly strong, results-oriented culture that prioritizes execution and long-term value creation. In addition to significant benefits for our customers, patients, and shareholders, we believe this combination will provide our employees with new and exciting opportunities as part of a highly competent, dynamic global organization. We look forward to this next chapter in our company’s great history.’”

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