Medical technology company BD (Franklin Lakes, NJ) announced on Dec. 29, 2017, that it has completed the acquisition of CR Bard Inc. for $24 billion. By acquiring CR Bard, which plays a leading role in the development and manufacture of vascular, urology, oncology and surgical specialty products, BD said in a press release that it is creating a “new healthcare industry leader with approximately $16 billion in annualized revenue.”
The acquisition was cleared by the Ministry of Commerce of the People's Republic of China (MOFCOM) on Dec. 28, the final regulatory hurdle to approve the deal, reported sister brand MD+DI. The clearance is contingent upon Bard divesting its “soft tissue core needle biopsy product line,” writes Amanda Pedersen in MD+DI. As reported in PlasticsToday in November, BD agreed to divest that product line and related assets to Merit Medical (South Jordan, UT).
“Today is a historic day for BD as we welcome Bard and its 16,000 associates to BD,” said Vincent A. Forlenza, Chairman and CEO, in a prepared statement. “These companies each have a legacy of more than 100 years of advancing the world of health and supporting those on the front lines of healthcare. We look forward to continuing to lead the industry through innovation and partnerships that bring more valuable solutions to our customers and their patients.”
Excluding transaction-related expenses, BD said in a press release that it does not expect the acquisition to have a material impact on its financial results in the first quarter of fiscal 2018, which ended on Dec. 31, 2017.
The company continues to expect the transaction to generate low-single-digit accretion to adjusted earnings per share in fiscal year 2018, and high single-digit accretion in fiscal year 2019.
Beginning with the second quarter of fiscal 2018, BD will report a new Interventional segment structure, which will include a majority of Bard offerings, with the remainder being reported under the Medical segment.