Key Takeaways
- Medical device maker Becton Dickinson (BD) is buying the Critical Care product division of Edwards Lifesciences for $4.2 billion in cash.
- BD said the purchase will expand its portfolio of smart connected medical care products.
- The company will use $1 billion in cash and take out $3.2 billion in new debt to pay for the transaction, which is expected to close by the end of the year.
Shares of Becton Dickinson (BDX) advanced close to 3% Monday as the maker of syringes and other medical devices announced it was buying the Critical Care product unit of Edwards Lifesciences (EW) for $4.2 billion in cash.
BD said the purchase expands its portfolio of smart connected care solutions, giving it access to Edwards’ Swan Ganz pulmonary artery catheter, minimally invasive sensors, noninvasive cuffs, and tissue oximetry sensors and monitors.
BD CEO Tom Polen said the Edwards Lifesciences Critical Care division has a “growing set of leading monitoring technologies, advanced AI-enabled clinical decision tools and robust innovation pipeline that complement BD’s existing technologies serving operating rooms and intensive care units.”
He added that BD expects the purchase to be “immediately accretive to all key financial measures with a strong return profile.” The Critical Care group has some 4,500 employees, and generated more than $900 million in revenue in 2023.
Becton Dickinson To Pay With Cash, New Debt
BD said that it will pay for the transaction with about $1 billion in cash and $3.2 billion in new debt. The deal is expected to close before the end of 2024.
Becton Dickinson shares climbed nearly 3% to $238.37 as of 3:35 p.m. ET Monday. However, even with Monday’s rise, they were still in negative territory for 2024. Shares of Edwards Lifesciences were 1.2% higher at $87.88 in intraday trading Monday, and have gained over 15% since the start of the year.