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BD and CareFusion Complete $12 Billion Merger

Executives at the two companies say their complementary products will allow for improved medication preparation, administration and monitoring, and would extend the companies' markets.

Chris Newmarker

The roughly $12 billion merger between Becton, Dickinson and Co. and CareFusion is expected to close Tuesday, March 17, according to the two companies.

The news came after the acquisition overcame its final hurdle, clearance from the European Commission under the EU Merger Regulation.

CareFusion (San Diego) will operate as part of the Medical Segment at BD (Franklin Lakes, NJ).  The deal will create one of the 10 largest medical device companies in the word. It comes on the heels of other huge mergers that have been altering the face of the medtech industry, including Medtronic's $48 billion purchase of Covidien and Zimmer Holdings' upcoming $13.35 billion acquisition of Biomet.

BD's CareFusion buy includes $10.1 billion in cash consideration and $2.1 billion in BD common stock going to CareFusion stockholders.

The 12th largest medical device company globally with its $8.4 billion in annual sales, medtech giant BD (Franklin Lakes, NJ) makes medical supplies, devices, laboratory equipment, and diagnostic products. Its product lineup includes disposable needles, syringes and intravenous catheters.

CareFusion is 23rd on the MD+DI "Top 40 Medical Device Companies" list, with $3.8 billion in annual revenue. CareFusion's flagship product lines include patient identification systems, the Pyxis automated dispensing device, the Alaris IV device, ventilators, skin prep products, infection surveillance systems, and surgical instruments.

"The powerful combination of the two companies will further enable us to deliver end-to-end solutions that increase efficiencies, reduce medication errors and improve patient safety in both hospitals and pharmacies," BD CEO Vincent Forlenza said in a February 5 conference call with analysts, transcribed by Seeking Alpha.

BD's Tom Polen said in the same call that the company expects gains in the near-term from CareFusion products such as Pyxis that do not require registration in emerging markets.

Forlenza noted that the BD Intelliport Medication Management System, recently approved by FDA, is complementary to CareFusion's smart pump and informatics platform. "This represents the next wave of patient safety related products," Forlenza said.

Refresh your medical device industry knowledge at BIOMEDevice Boston, May 6-7, 2015.

Chris Newmarker is senior editor of Qmed and MPMN. Follow him on Twitter at @newmarker.

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