BD pens $24B Bard buyout to create medtech powerhouse

BD has struck a $24 billion deal to buy C.R. Bard. The takeover will strengthen BD’s position in the markets for catheters, pumps and other items while also giving it a bigger presence in fast-growing fields including oncology and biosurgery.

Analysts at Jefferies said the acquisition would create “the undisputed leader in vascular access solutions.” This leadership position will be underpinned by BD’s portfolio of needles, syringes and other medication delivery devices and Bard’s peripherally inserted catheters and ports. BD, also known as Becton Dickinson, sees such breadth and scale strengthening its hand in a consolidating healthcare sector.

“We will be able to partner [with providers] on fundamental treatment processes in a way that no one else can,” Becton Dickinson CEO Vincent Forlenza told Reuters.

BD is borrowing heavily to make the deal happen. The med tech company will finance most of the cash portion of the deal with a $10 billion loan and a $4.5 billion sale of equities and other securities. BD will fund another tranche of the takeover by issuing $8 billion in new stock to Bard’s shareholders. To offset the outlay, BD aims to make cost savings of $300 million a year by 2020.

The buyout continues a busy few years for big med tech deals. Since Medtronic completed its $49.9 billion takeover of Covidien early in 2015, BD has bought CareFusion for $12.2 billion, Zimmer has landed Biomet for $14 billion and Abbott has acquired St. Jude Medical in a deal originally valued at $25 billion. If the BD-Bard deal closes as expected later this year, it will move the amount spent in big ticket med tech takeovers in the past few years well past the $100 billion mark. Shares in BD have risen 31% since it closed the CareFusion deal.

By Nick Paul Taylor | FierceBiotech

Image Credit: MassDevice

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About Peter Coffaro 704 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the orthopedic industry. Recognized by MedReps.com as one of the top medical sales influencers in the industry; he has 10 years of combined sales management experience and has held positions as a Director, General Manager and Distributor. Peter has worked for some of the top orthopedic companies in the world - Zimmer, DePuy and Stryker. He is also the founder of OrthoFeed: a popular blog that covers orthopedic news and emerging medical technologies. Peter is a three-time Hall of Fame award winner at Johnson and Johnson and has an extensive background in organizational development, business development, sales management, digital marketing and professional education. Peter holds a B.S. degree in Biology from Northern Illinois University.

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