BECTON DICKINSON acquires CareFusion for $12.2 Billion

BECTON DICKINSON acquires CareFusion for $12.2 Billion

BECTON DICKINSON acquires CareFusion for $12.2 Billion

Medical technology firm Becton, Dickinson & Company acquires CareFusion in cash and stock deal for $12.2 Billion.

 The deal is one of  the latest in mergers and acquisitions in the health care industry. Beckton Dickinson  will pay $58 a share for CareFusion, most of that in cash. That is 26 percent premium  above CareFusion’s Friday closing price .

 “This is a perfect strategic fit,” Vincent A. Forlenza, BD’s chief executive, said in an interview. “We’re coming together to improve medication management, primarily in hospitals.”

 Kieran T. Gallahue, CareFusion’s chief executive, said the deal would allow the combined company to help in efforts to limit the rise of health care costs in the United States.

 “It will help us lower costs and improve patient safety,” said Mr. Gallahue

 “The combination will improve quality of patient care and reduce health care costs by addressing unmet needs in hospitals, hospital pharmacies and alternate sites of care to increase efficiencies, reduce medication administration errors and improve patient and health care worker safety,” the companies said in a statement.

 Analysts are optimistic about its future after reporting CareFusion earnings. In words of Mr. Gallahue it was good time to sell the company.

 Goldman Sachs advised Becton Dickinson with Skadden Arps, Slate, Meagher & Flom as legal advisor. CareFusion advisors were Perella Weinberg Partners and Barclays with Wachtell, Lipton, Rosen & Katz as legal provider.

Mr. Stakebay says:

 Becton Dickinson was looking for an acquisition to expand its range of offerings and CareFusion was this right move. Combined company will one of the five largest medical device companies in the world and help in efforts to limit the rise of health care costs in the United States.

Chairman, CEO of Beckton Dickinson….Vincent A. Forlenza…..2009-present…..$ 9 183 033  (2013)

 Chairman and CEO of CareFusion………Kieran Gallahue……..2011-present……$ 9 628 148 (2013)

 

BECKTON DICKINSON

CAREFUSION

Revenue

US$ 8.054 billion (2013)

US$ 3.842 billion (2013)

Operating income

US$ 1.254 billion (2013)

US$ 621 million (2013)

Profit

US$ 1.293 billion (2013)

US$ 417 million (2013)

Total assets

US$ 12.149 billion (2013)

US$ 9.655 billion (2013)

Total Equity

US$ 5.043 billion (2013)

US$ 5.39 billion (2013)

Employees

29979 (2013)

16000 (2013)

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