BD Signs $4.2 Billion Deal to Acquire Edwards Lifesciences’ Critical Care Group

BD, one of the largest medical technology companies in the world, today announced that it has entered into a definitive agreement to acquire the Critical Care product group from Edwards Lifesciences, a global leader in advanced monitoring solutions, for $4.2 billion in cash.

Critical Care is a high-growth industry leader in advanced patient monitoring with advanced AI algorithms. Critical Care invented the hemodynamic monitoring category, and its products currently are used in more than 10,000 hospitals globally to help increase outcomes in real time in critically ill patients with cardiovascular conditions. Hemodynamic monitoring and medication management technologies are often used simultaneously in the operating room or intensive care units, creating longer-term opportunities for meaningful innovation and interoperability across the care continuum. Critical Care has approximately 4,500 employees, most of whom are based in Irvine, CA. In 2023, the business generated more than $900 million in revenue, according to the announcement.

Critical Care will operate as a separate business unit within BD's medical segment, based in Irvine, CA, and led by Katie Szyman, who has served as corporate vice president of Critical Care since 2015.

New avenues for growth.

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“Critical Care expands BD's portfolio of smart connected care solutions with its growing set of leading monitoring technologies, advanced AI-enabled clinical decision tools and robust innovation pipeline that complement BD's existing technologies serving operating rooms and intensive care units," said Tom Polen, chairman, CEO and president of BD. "We believe the combination unlocks multiple new avenues for growth and value creation through BD's broad global footprint, increased penetration across new and existing hospital customers, new innovation opportunities across data sets and platforms, and application of the BD Excellence operating system. The transaction is expected to be immediately accretive to all key financial measures with a strong return profile, which underscores our continued commitment to generate sustained shareholder value,” said Polen.

Supported by AI.

Critical Care's portfolio includes the gold-standard Swan Ganz pulmonary artery catheter, minimally invasive sensors, noninvasive cuffs, and tissue oximetry sensors and monitors. Its smart technologies are driven by advanced data analytics with machine learning and AI-based predictive and prescriptive algorithms to help clinicians better understand current and future patient conditions and provide clinical decision support tools.

BD expects to fund the all-cash transaction with approximately $1 billion of cash and $3.2 billion of new debt.

An injection molding powerhouse.

BD reportedly is one of the largest users of injection molded products in the world. It recently announced that it would increase production of plastic syringes at its facilities in Nebraska and Connecticut to prevent shortages stemming from FDA’s recommendation to avoid using syringes made in China because of quality concerns.