BD, a leading global medical technology company, has announced it has completed the acquisition of C R Bard, creating a new health care industry leader with approximately US$16 billion in annualised revenue.
In a press release, BD state that the combined company is uniquely positioned to improve both the treatment of disease for patients and the process of care for health care providers. The transaction builds on BD’s leadership in medication management and infection prevention with an expanded offering of solutions across the care continuum, the company says. With Bard’s current products and pipeline, BD hopes to increase opportunities in fast-growing clinical areas, enhancing growth opportunities for the combined company in non-US markets.
“Today is a historic day for BD as we welcome Bard and its 16,000 associates to BD,” says Vincent A Forlenza, chairman and CEO. “These companies each have a legacy of more than 100 years of advancing the world of health and supporting those on the frontlines of health care.”
Under the terms of the transaction, upon completion of the acquisition, Bard became a wholly owned subsidiary of BD, and each outstanding share of Bard common stock was converted to the right to receive (1) US$222.93 in cash without interest and (2) 0.5077 of a share of BD common stock. As a result of the completion of the acquisition, Bard shares will cease trading and will be delisted from the New York Stock Exchange.
Excluding transaction-related expenses, BD does not expect the acquisition to have a material impact on the company’s financial results in the first quarter of fiscal 2018, which ended December 31st, 2017.
The company continues to expect the transaction to generate low-single digit accretion to adjusted earnings per share in fiscal year 2018, and high-single digit accretion in fiscal year 2019. The company will provide an update to its full fiscal year 2018 outlook on its first fiscal quarter earnings conference call to reflect the anticipated contribution from Bard’s operations through BD’s fiscal year, which ends September 30th, 2018.
Beginning with the second quarter of fiscal 2018, BD will report a new Interventional segment structure, which will include a majority of Bard offerings, with the remainder being reported under the Medical segment.