BD Sells Surgical Instrumentation Platform to Steris

Becton, Dickinson and Company (BD) today announced a signed definitive agreement to sell its surgical instrumentation platform to Steris for $540 million.

The sale includes V. Mueller and Snowden-Pencer laparoscopic instruments, and Genesis sterilization containers, as well as three manufacturing facilities located in St. Louis, MO, Cleveland, OH, and Tuttlingen, Germany. The approximately 360 employees who support the platform will transfer to Steris upon the completion of the transaction, which is expected to close within BD’s fiscal year 2023.

The decision to divest the platform comes from the “simplify” pillar of the company’s 2025 strategy meant to simplify BD’s product portfolio and manufacturing network while supporting revenue growth and market expansion. BD is not alone in implementing similar strategies for the coming years based on uncertain economic conditions, as well as waning COVID-19 testing and vaccine numbers.

Only last week, Siemens Healthineers, a company that came into 2023 with plans of a complete overhaul of its diagnostics division, laid off 67 employees from its Flanders, New Jersey manufacturing facility as it consolidates its Atellica Solution IM module manufacturing to its Swords site in Dublin, Ireland. This was announced only a month after the company’s 2Q23 revenue showed a 39% downturn resulting from tapering rapid COVID-19 antigen test demand.

At the time it announced the overall of its diagnostics division, Siemens Healthineers said that it expects savings of around €300 million each year by 2025, so there’s no surprise other companies are also considering whether to consolidate, disinvest, and sunset products no longer pulling their weight.

"This transaction further advances the BD Interventional segment's focus on high-growth end markets,” said Rick Byrd, president of the interventional segment at BD.

The signed definitive agreement between BD and Steris included assets accounting for annualized revenue of approximately $170 million. BD noted that if the transaction closes as expected within the company’s fiscal year 2023, the impact of the sale to “adjusted earning per share would be immaterial,” according to the press release announcing the sale. Additional information regarding the agreement, according to the company, will be provided during the fiscal year 2023 third-quarter earnings conference call.