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BD takes critical care business from Edwards Lifesciences for $4.2 billion

by Gus Iversen, Editor in Chief | June 04, 2024
Business Affairs
BD (Becton, Dickinson and Company) has acquired Edwards Lifesciences' Critical Care product group for $4.2 billion in an effort to enhance its portfolio of smart connected care solutions and expand its advanced monitoring technology capabilities.

Critical Care, which consists of patient monitoring solutions and AI-enabled clinical decision tools, will operate as a separate unit within BD's Medical segment. The business will remain based in Irvine, California, and will be led by Katie Szyman, who has been the corporate vice president of Critical Care since 2015.

Tom Polen, BD's chairman, CEO, and president, highlighted that the acquisition aligns with BD's growth strategies and core innovation goals. He emphasized that the transaction is expected to be immediately accretive to BD's revenue growth, adjusted gross and operating margins, and adjusted earnings per share.

Critical Care's portfolio includes the Swan Ganz pulmonary artery catheter, minimally invasive sensors, noninvasive cuffs, and tissue oximetry sensors and monitors. These technologies, driven by advanced data analytics and AI-based algorithms, provide clinicians with critical insights for improving patient outcomes.

Last summer, BD announced it was selling off its surgical instrumentation platform to Irish equipment manufacturer STERIS for $540 million. The sale is in line with BD’s 2025 strategy, which is focused on simplifying its product portfolio and manufacturing network for revenue growth and margin expansion.

The new acquisition is expected to close by the end of the calendar year, pending regulatory reviews and customary closing conditions. BD plans to fund the transaction with $1 billion in cash and $3.2 billion in new debt, aiming to delever to its long-term net leverage target within 12 to 18 months post-closing.

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