Becton Dickinson agreed to purchase CareFusion for a total of $12.2 billion increasing its hold on global medical management.
Becton Dickinson has agreed to acquire CareFusion for $58.00 per share in cash and stock for a total of $12.2 billion. Becton Dickinson will become one of the global leaders in providing medication management and patient safety solutions.
The combination of the two companies’ complementary product portfolios will yield integrated medication management solutions as well as smart devices. The combination will also improve the quality of patient care and will hopefully reduce healthcare costs by focusing on the unmet needs of patients in hospitals, hospital pharmacies and alternate sites of care to increase efficiencies. Doing so will reduce medication administration errors and improve patient and healthcare worker safety.
Becton Dickinson also expects a more solid position in patient safety to maximize outcomes its areas of expertise such as infection prevention, respiratory care, and acute care procedural effectiveness.
The terms of the transaction has been revealed and this mentioned that CareFusion shareholders will receive $49.00 in cash and 0.0777 of a share of BD for each share of CareFusion, or a total of $58.00 per CareFusion share based on BD’s closing price as of October 3, 2014.
The transaction is subject to regulatory and CareFusion shareholder approvals and customary closing conditions. It is expected to close in the first half of calendar year 2015. And during this time, BD shareholders will own approximately 92 percent of the combined company and CareFusion shareholders will own approximately 8 percent.
Vincent A. Forlenza, BD’s Chairman, Chief Executive Officer and President, said, “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 world-wide infrastructure. 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. 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. We’ve long admired CareFusion’s strong franchises and look forward to welcoming their talented team to BD.”
Kieran T. Gallahue, CareFusion Chairman and Chief Executive Officer, said, “As part of BD, we see new growth opportunities for our products in global markets, new value we can create for our customers and new opportunities for our employees as part of what will become one of the largest, global leaders in med-tech. 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.”
BD has created a detailed execution plan to ensure a seamless integration for CareFusion. An integration team made of senior members of both organizations will be led by BD Chief Operating Officer William A. Kozy. Through a strategized execution of its plans it is confident that it can achieve identified cost synergies as it builds a dynamic organization that combines two world class companies. This transaction also offers more opportunities for employees as part of a global leader.
CareFusion will operate as part of BD’s Medical segment; CareFusion will continue to hold headquarters in San Diego.
A live conference call and webcast will be conducted by Becton Dickinson and CareFusion on October 6, 2014, at 8:00 a.m. (ET). The webcast of the conference call and related slides will be accessible through BD’s and CareFusion’s websites. A replay will be available through BD’s and CareFusion’s websites, or at 800-585-8367 (domestic) and 404-537-3406 through the close of business on October 13, 2014, confirmation number 16089829.
About Becton Dickinson
Becton, Dickinson and Company is an American medical technology company that manufactures medical devices, instrument systems and reagents. It is headquartered in Franklin Lakes, New Jersey; the company’s customers include healthcare institutions, science researchers, clinical laboratories, the pharmaceutical industry and the general public. BD is divided into three segments: BD Medical, BD Diagnostics and BD Biosciences. Becton Dickinson stock market evolution:
About Vincent Forlenza
Mr. Vincent A. Forlenza, also known as Vince, BD, has been the Chairman of Becton, Dickinson and Company since July 1, 2012, President since January 1, 2009 and Chief Executive Officer since October 1, 2011. Mr. Forlenza holds a Bachelor’s Degree in Chemical Engineering from Lehigh University and an MBA from the Wharton School of the University of Pennsylvania.
CareFusion is a global, medical technology corporation that specializes in two areas: reducing medication errors and prevention of health care-associated infections. The company manufactures health care technologies, automated dispensing and patient identification systems, ventilators and respiratory products, skin prep products, infection surveillance, surgical instruments and a line of products that support interventional medicine. CareFusion stock market evolution:
About Kieran Gallahue
Kieran Gallahue is chairman and chief executive officer for CareFusion.
Kieran holds a bachelor’s degree in economics from Rutgers University and a master’s degree from Harvard Business School.