CareFusion Merger with BD Nears Finish Line

Nancy Crotti

December 10, 2014

2 Min Read
CareFusion Merger with BD Nears Finish Line

CareFusion shareholders will vote January 21, 2015 on the company's proposed $12.2 billion merger with Becton, Dickinson and Co.

The San Diego-based company announced the special meeting this week.

BD's offer to purchase CareFusion in a cash-and-stock transaction cleared a U.S. antitrust hurdle in November and now awaits approval by the European Union, CareFusion said in a Securities and Exchange Commission filing. The merger was announced in October.

"Based on our projected filing date for the formal notification in the EU, the close of the acquisition --and 'Day One'--will likely not occur until some time in February 2015 at the earliest," CareFusion said in the SEC filing.

Approximately $10.1 billion of the acquisition price will be in the form of cash, while about $2.1 billion will be stock, priced as of closing on Oct. 3, 2014, according to an SEC filing. In a separate filing last week, BD said it had priced a $6.2 billion bond offering to raise part of the cash for the purchase.

The 12th largest medical device company globally by total annual revenue, 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 25th on the  MD+DI "Top 40 Medical Device Companies" list. The new company would be in the top 10. 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 combined companies' complementary products would allow for medication preparation, administration and monitoring, and would extend the companies' markets, according to a BD statement and a report by Reuters.

The BD-CareFusion deal joins a handful of other multibillion-dollar medtech mergers and acquisitions deals that have made news this year, including Medtronic's planned $43 billion purchase of Covidien and Zimmer Holdings' plans for the $13.35 billion acquisition of the Biomet, the other big ortho device company headquartered in Warsaw, IN.

Such mergers are likely spurred by the Affordable Care Act, President Barack Obama's program of cost-cutting healthcare reforms. Medical device companies, which mostly supply health providers, are looking for ways to drive down costs and stay competitive.

Nancy Crotti is a contributor to Qmed and MPMN.

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About the Author(s)

Nancy Crotti

Nancy Crotti is a frequent contributor to MD+DI. Reach her at [email protected].

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