BD buys Bard, appoints new presidentApril 24, 2017
BD (Becton, Dickinson and Company) will acquire Bard, a medical technology company focused on vascular, urology, oncology and surgical specialty products for $24 billion and appoint Tom Polen as new president of BD.
The transaction considering acquisition will be immediately accretive and is expected to generate high-single digit accretion to adjusted earnings per share (EPS) in fiscal year 2019, BD said. Furthermore, approximately $300 million of estimated annual, pre-tax, run-rate cost synergies are expected by fiscal year 2020. Separately, BD also expects to benefit from revenue synergies beginning in fiscal year 2019. The transaction is expected to improve BD’s gross margins by approximately 300 basis points in fiscal year 2018, increase BD’s earnings per share growth trajectory to the mid-teens, and generate strong cash flow, the company said in its press release.
Vince Forlenza, BD’s chairman and chief executive officer, said, “Combining with Bard will accelerate our ability to offer more comprehensive, clinically relevant solutions to customers and patients around the globe, creating a strong partner for healthcare providers who are increasingly focused on delivering better outcomes at a lower total cost. Our two purpose-driven organizations are well-aligned strategically, sharing a strong track record of performance and a deep commitment to addressing unmet needs in today’s challenging healthcare environment. We expect the transaction to contribute meaningfully to BD’s plans for revenue growth and margin expansion, and generate outstanding value both near- and long-term for shareholders. I am excited to welcome Bard’s talented employees to our strong and dedicated team as we bring together two companies with such complementary capabilities, values and strong reputations for delivering superior results.”
In a separate press release issued on Monday BD announced that it will appoint Tom Polen as new company’s president.
Polen will oversee all of BD’s operating segments – the Medical and Life Sciences segments, as well as the new Interventional segment, which will include the C. R. Bard businesses following the close of BD’s acquisition of Bard, the company said. Vince Forlenza will remain chairman and CEO of BD.