Becton Dickinson Acquires C.R. Bard for USD 24 Billion
By HospiMedica International staff writers
Posted on 27 Apr 2017
Image: Becton Dickinson has entered into a definitive agreement to acquire C. R. Bard (Photo courtesy of iStock).
Global medical technology company Becton Dickinson has entered into a definitive agreement to acquire C. R. Bard, Inc., a manufacturer and marketer of medical technologies in the fields of vascular, urology, oncology and surgical specialty products, for a total consideration of USD 24 billion.
By combining Bard's pipeline in fast-growing vascular access segments – PICCs (peripherally inserted central catheters), midlines and drug delivery ports – with BD's innovation in IV drug preparation, dispensing, delivery and administration, the new medical technology company will be able to provide end-to-end medication management solutions across the care continuum. Currently, BD's offerings in infection prevention address 75 percent of the most costly and frequent healthcare associated infections (HAIs). The new company’s combined solutions set will have a more comprehensive, clinically relevant offering to address Surgical Site Infections (SSIs) and Catheter-Related Blood Stream Infections (CRBSIs).
Bard's product portfolio and innovation pipeline will provide more opportunities for BD in fast growing clinical areas, including peripheral vascular therapy, oncology and bio-surgery. The combined company will offer an expanded portfolio of clinically relevant products, with opportunities to drive near-term revenue synergies outside of the U.S. Bard's presence in vascular access and surgery will also help drive sales of the highly complementary CareFusion portfolio outside of the U.S. The combined company is expected to have a large and growing presence in the emerging markets, including USD 1 billion in annual revenue in China.
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."