BDX

BD Acquires Edwards Lifesciences' Critical Care Unit

BD (Becton, Dickinson and Company) has announced its acquisition of Edwards Lifesciences' critical care product group for a staggering $4.2 billion in cash. This move is expected to immediately boost BD's financial metrics, including revenue growth, adjusted gross margin, adjusted operating margin, and adjusted earnings per share.

The critical care product group, a global leader in advanced monitoring solutions, generated over $900 million in revenue in 2023. BD anticipates this acquisition to be immediately accretive to all key financial measures and expects the newly acquired business to deliver durable revenue growth of approximately 6% to 7%.

BD plans to finance the all-cash transaction with approximately $1 billion of cash and $3.2 billion of new debt. They anticipate closing the transaction before the end of the calendar year, pending customary regulatory reviews and closing conditions.

The critical care product group will operate as a separate business unit within BD's medical segment and will continue to be based in Irvine, California. Katie Szyman, the current corporate vice president of critical care, will lead the new business unit within BD.

This acquisition is aligned with BD's strategy for growth and value creation. It is expected to unlock new avenues for growth and value creation through BD's global footprint and increased penetration across new and existing hospital customers.

BD's strategic move to acquire Edwards Lifesciences' critical care product group underscores its commitment to generating sustained shareholder value and enhancing its portfolio of smart connected care solutions. As a result of these announcements, the company's shares have moved 2.8% on the market, and are now trading at a price of $238.44. Check out the company's full 8-K submission here.

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