The world of health-care south of the border got slightly smaller on the weekend, with word Sunday that Becton, Dickinson and Co. (NYSE: BDX) would acquire C. R. Bard Inc. (NYSE: BCR) for $24 billion U.S. in the latest merger of medical-supplies manufacturers.
The companies said the deal values C.R. Bard at $317 per share, a 25.2% premium over the company’s share price as of Friday’s close. Bard shareholders will receive about $222.93 in cash and the balance in Becton Dickinson stock. This would lead to Bard shareholders owning about 15% of the combined company.
The deal comes two years after Becton Dickinson acquired CareFusion Corp for $12 billion U.S., and is proving the latest in a string of deals in the medical technology sector, as manufacturers turn to acquisitions to boost profit margins.
Becton Dickinson, based in Franklin Lakes, N.J., said the Bard deal would improve its market position in medication management and infection prevention by broadening its product portfolio. Bard, whose products include catheters and implantable heart-devices, had $3.7 billion U.S. in sales last year.
There is also the expectation that acquisition would boost non-U.S. growth options in markets such as China, and to raise per-share earnings in fiscal year 2019.
Becton Dickinson and Bard said they expected their deal to close in the fall of 2017, subject to regulatory and shareholder approvals.
Shares in Becton declined $6.10, or 3.3%, to $179.19, soon after the opening bell on Monday morning, while Bard shares rocketed $51.33, or 20.3%, to $304.40.
