Is There a $500 Million Medtech Deal in the Works?

Becton, Dickinson & Co. appears to be seeking a buyer for its V. Mueller surgical instruments business, according to Reuters.

Qmed Staff

One of the next major medtech deals could involve Becton, Dickinson & Co.

The Franklin Lake, NJ-based medtech company has retained JPMorgan Chase & Co. to assist in the potential sale of BD's V. Mueller surgical instruments business, sources familiar with the matter tell Reuters. (The sources declined to have their names used because the matter is private.)

A BD spokesperson only said that BD is strategically reviewing all its business.

The company could be seeking to sell of non-core businesses after its $12 billion merger with San Diego-based CareFusion, which closed in March.

The CareFusion buy turned BD into one of the 10 largest medical device companies in the world, combining complementary product lineups in the process.

BD makes medical supplies, devices, laboratory equipment, and diagnostic products. Its product lineup includes disposable needles, syringes and intravenous catheters.

With the CareFusion acquisition, BD now also makes include patient identification systems, the Pyxis automated dispensing device, the Alaris IV device, ventilators, skin prep products, infection surveillance systems, and surgical instruments.

Medical device companies have been on a mergers and acquisitions binge of late, partly fueled to meet U.S. health providers' demands for more efficiency and better patient management under Obamacare. Medtech companies with larger product portfolios of devices can better meet such needs. (Think of BD being able to more efficiently supply a hospital operating room now that it has CareFusion's products in the mix.)

Other major medtech M&A deals include including Medtronic's $48 billion purchase of Covidien and Zimmer Holdings' upcoming $13.35 billion acquisition of Biomet.

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

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