Divestiture Advances BD2025 Strategy to
Simplify Portfolio and Focus on Higher-Growth
Markets
FRANKLIN
LAKES, N.J., June 20,
2023 /PRNewswire/ -- BD (Becton, Dickinson and
Company) (NYSE: BDX), a leading global medical technology company,
today announced that it has signed a definitive agreement to sell
its Surgical Instrumentation platform to STERIS (NYSE: STE) for
$540 million.
The divestiture will include V. Mueller™, Snowden-Pencer™ and
Genesis™ branded products and three manufacturing facilities
located in St. Louis, Mo.,
Cleveland, Ohio and Tuttlingen,
Germany. Approximately 360
employees who support this platform will transfer to STERIS upon
the completion of the transaction. The divestiture is expected to
close within BD's fiscal year 2023, ending Sept. 30, pending satisfaction of customary
closing conditions and U.S. Federal Trade Commission (FTC)
regulatory approval. The Surgical Instrumentation platform is
reported as part of the BD Surgery business within the BD
Interventional segment.
Strategic Rationale
Divesting the platform advances the "Simplify" pillar of the BD
2025 strategy and is an important step in simplifying BD's product
portfolio and manufacturing network. The platform has three
dedicated manufacturing sites and about 20,000 SKUs in its
portfolio. This strong value-creating transaction supports the
achievement of BD's 2025 financial goals, including revenue growth
and margin expansion. Cash proceeds will be deployed consistent
with BD's capital allocation priorities to enable a continued
durable growth profile.
STERIS is a leading global provider of products and services
that support patient care with an emphasis on infection prevention.
With global sales of $5 billion,
STERIS has more than 17,000 dedicated associates around the world
working together to supply a broad array of infection prevention
and other procedural products and services, focused primarily on
health care, pharmaceutical, medical device and dental customers.
BD's surgical instrumentation platform is complementary to STERIS's
Healthcare segment and will allow them to better meet hospitals'
and surgery centers' product and service needs.
"The Surgical Instrumentation platform has a 120-year legacy of
providing reliable and trusted high-quality products, and STERIS is
well positioned to maximize the value of this extensive portfolio
and is fortunate to be adding such a dedicated and talented team to
its organization," said Rick Byrd,
president of the Interventional segment at BD. "This transaction
further advances the BD Interventional segment's focus on
high-growth end markets. We look forward to continuing to address
unmet needs in health care through a highly differentiated and
innovative set of solutions and products."
Transaction Information
The assets included in the sale account for annualized revenue
of approximately $170 million. If the
transaction closes as expected within BD's fiscal year 2023, the
impact to adjusted earnings per share (EPS) would be immaterial.
Other terms of the agreement were not disclosed. Additional
commentary regarding this transaction will be provided during the
company's fiscal year 2023 third-quarter earnings conference
call.
Ropes and Gray, LLP were legal advisers for BD.
About BD
BD is one of the largest global medical
technology companies in the world and is advancing the world of
health by improving medical discovery, diagnostics and the delivery
of care. The company supports the heroes on the frontlines of
health care by developing innovative technology, services and
solutions that help advance both clinical therapy for patients and
clinical process for health care providers. BD and its 77,000
employees have a passion and commitment to help enhance the safety
and efficiency of clinicians' care delivery process, enable
laboratory scientists to accurately detect disease and advance
researchers' capabilities to develop the next generation of
diagnostics and therapeutics. BD has a presence in virtually every
country and partners with organizations around the world to address
some of the most challenging global health issues. By working in
close collaboration with customers, BD can help enhance outcomes,
lower costs, increase efficiencies, improve safety and expand
access to health care. For more information on BD, please visit
bd.com or connect with us on LinkedIn at
www.linkedin.com/company/bd1/ and Twitter @BDandCo.
Forward Looking Statements
This press release contains certain forward-looking statements (as
defined under Federal securities laws) relating to the pending sale
of BD's Surgical Instrumentation platform. Forward-looking
statements can be identified by the use of words such as "will",
"expect", and similar words. All such statements are based on the
current expectations of BD management and involve a number of risks
and uncertainties, including the risk that the transaction may not
be completed or that it will not be completed in the anticipated
timeframe. The forward-looking statements in this press release
speak only as of the date hereof, and BD undertakes no obligation
to update any forward-looking statements to reflect events or
circumstances after the date hereof, except as required by
applicable laws or regulations.
Contacts:
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Media:
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Investors:
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Troy
Kirkpatrick
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Francesca
DeMartino
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VP, Public
Relations
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SVP, Head of Investor
Relations
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858.617.2361
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201.847.5743
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troy.kirkpatrick@bd.com
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francesca.demartino@bd.com
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SOURCE BD (Becton, Dickinson and Company)