Becton Dickinson (BD) has agreed to buy interventional device developer C.R. Bard for $24 billion.
The deal will expand BD's leadership position in medication management and infection prevention by enabling it to offer other healthcare products, according to the firm. In addition, BD believes that Bard's strong product portfolio and innovation pipeline will increase its opportunities in various clinical areas, while also improving growth opportunities outside the U.S. market.
Bard has a leadership position in the vascular access segment of healthcare, such as peripherally inserted central catheters (PICCs), midlines, and drug delivery ports, while BD has a strong presence in IV drug preparation, dispensing, and delivery and administration. The new combined company will be able to provide end-to-end products and services in medication management.
The deal will also expand BD's position in infection prevention, with product offerings that address 75% of the most costly and frequent healthcare-associated infections. The combined company will have a more comprehensive product line addressing surgical site infections and catheter-related bloodstream infections.
Bard's products will also help BD in the oncology and surgery fields, and they will help BD expand its focus on the treatment of diseases beyond diabetes to include peripheral vascular disease, urology, hernia, and cancer. Bard's presence in vascular access and surgery will help drive sales of BD's complementary CareFusion portfolio outside the U.S.
In addition, BD said it plans to create a third segment of the company -- BD Interventional -- to incorporate the Bard businesses. The company also announced the appointment of Tom Polen, currently executive vice president and president of the BD Medical segment, as president of BD, effective immediately. Polen will oversee BD's Medical and Life Sciences segments, as well as the new Interventional segment, in his new role.
The transaction is subject to customary regulatory and shareholder approvals, and it is expected to close in the fall of 2017.
