BD to Acquire C. R. Bard for $24 Billion in Cash and Stock, Deal Approved by Both Boards

VCBeat24It was learned from foreign media that one of the world's largest medical technology and medical device companiesBD (Becton Dickinson)Medical (Becton Dickinson) announced that it would, through a cash-and-stock transaction,240acquire Bard Medical Technologies for hundreds of millions of U.S. dollars (C R Bard）。

This transaction has been approved by the boards of directors of both companies. BD Medical will pay approximately $222.93 in cash per share of Bard stock, plus 0.5077 shares of BD stock, which, based on last Friday’s closing price, equates to $317 per share.

Compared with companies such as “GPS” and Johnson & Johnson, BD Medical tends to be more low-profile. BD is one of the world’s largest medical technology companies engaged in the research and development, manufacturing, and sales of medical devices, medical systems, and reagents. Founded in New York in 1897, the company is headquartered in Franklin Lakes, New Jersey, USA, with operations spanning the globe.

The company’s business is divided into three major segments: BD Medical, BD Diagnostics, and BD Biosciences. It manufactures and sells products including medical consumables, laboratory instruments, antibodies, reagents, and diagnostic solutions. The company serves healthcare institutions, life science research institutes, clinical laboratories, industrial entities, and the general public. In 2016, its sales revenue reached $12.5 billion, representing a year-over-year growth of more than 20%.。

BD maintains branch offices, R&D centers, and manufacturing facilities in more than 50 countries and regions worldwide, with business operations spanning six continents and a global workforce of approximately 50,000 employees. In 1994, BD officially registered representative offices in China to conduct its business in the country. It has established Shanghai as the headquarters for BD China, supported by a core network of 14 representative offices in cities including Beijing and Guangzhou, thereby extending its reach across China. The company employs nearly 2,500 people in China.BD’s product portfolio in the Chinese market comprises three major segments: Medical Products, Diagnostic Products, and Biosciences Products.

BD began with syringe products and gradually transitioned to disposable medical supplies, such as plastic syringes, disposable needles, and intravenous catheters, creating many world-class inventions in this field. In the area of in vitro diagnostics, BD’s microbial culture and identification systems, as well as pre-analytical sample processing products, are among the industry’s top offerings, enjoying an excellent reputation and serving as models for numerous domestic companies. In the life sciences sector, its flagship flow cytometers and associated reagent kits are industry leaders, with the FACS product series being highly favored by users.

VCBeat has learned that since the acquisition of CareFusion in 2015, two major product lines have been added:One is drug management services., including infusion management systems and medication storage and dispensing systems;The second is the respiratory diagnosis and treatment system, including cardiopulmonary function analyzers and the respiratory product line. In fact, BD was primarily interested in medication management systems, which encompass both instruments and consumables, rather than pure instrument-based respiratory diagnosis and treatment systems. Consequently, it spun off and sold this business in 2016.

Bard Company (BCR), founded in 1907 and headquartered in New Jersey, USA, is one of the top 10 multinational medical corporations in the United States. It was named one of America's best large companies by Forbes magazine in 2005 and listed on the New York Stock Exchange (BCR) in 1968. Currently, it is a globally leading multinational medical device company integrating research and development, production, and sales.

Bard's core business is concentrated inPeripheral Vascular, Specialized Surgery, Oncology, Urology, and Electrophysiologyand other clinical specialties, and has established a global market leadership position in vascular access, surgical hernia repair, urology, and peripheral vascular disease.

In the management of specific diseases, BARD focuses on the needs in the fields of diagnosis and interventional therapy, primarily involving: vascular, urology, and oncology. Additionally, BARD is also investing in and supporting advanced surgical specialty products and services such as hernia repair, powered irrigation, and hemostasis.

Today, Bard Company has shifted its focus to disease management, transitioning from health and disease prevention to early diagnosis and treatment, and expanding into post-treatment management.

VCBeat learned that,In March 2015, Becton, Dickinson and Company (BD) acquired CareFusion for $12.2 billion. As such a substantial acquisition required significant leverage, BD had accumulated $17.2 billion in debt by 2017, with long-term debt nearing $15 billion. For BD, whose annual net profit was close to $1 billion, this represented a considerable financial burden.

BD Spends Another $24 Billion on M&A: Will This Acquisition Leave It “Overextended”?