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 1430 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

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