BD Acquires Edwards Lifesciences' Critical Care Unit for $4.2 Billion

Edwards Lifesciences will sell its Critical Care product group to BD for $4.2 billion in cash, enhancing Edwards' financial flexibility and enabling strategic growth investments.

BD (Becton, Dickinson and Company), a global leader in medical technology, has announced a definitive agreement to acquire the Critical Care product group from Edwards Lifesciences for $4.2 billion in cash. This strategic move is set to enhance BD's portfolio of smart connected care solutions by integrating Edwards' advanced monitoring technologies, including AI-enabled clinical decision tools and a robust innovation pipeline, into its offerings. The acquisition is poised to create significant value for both companies, offering new growth avenues and synergies that align with BD's strategic objectives in healthcare innovation.

The Critical Care product group, a pioneer in hemodynamic monitoring, serves millions of patients across more than 10,000 hospitals worldwide. Its portfolio includes the reputable Swan Ganz pulmonary artery catheter, minimally invasive sensors, noninvasive cuffs, tissue oximetry sensors, and monitors. These technologies are at the forefront of using advanced data analytics, machine learning, and AI-based algorithms to assist clinicians in understanding the cardiovascular conditions of critically ill patients in real-time, thereby improving patient outcomes.

Tom Polen, Chairman, CEO, and President of BD, stated that this acquisition is immediately accretive to BD's revenue growth, adjusted gross margin, adjusted operating margin, and adjusted EPS. Polen highlighted that Critical Care's alignment with BD's core innovation and business strategies, combined with a strong cultural fit, positions BD to unlock multiple new growth opportunities. This includes increased global footprint penetration, innovation across data sets and platforms, and the application of BD Excellence operating system principles for additional margin expansion and value generation.

Critical Care is projected to deliver durable revenue growth of approximately 6% to 7%, with significant contributions to BD's adjusted gross and operating margins over time. The transaction is financed through a combination of $1 billion of BD's cash and $3.2 billion in new debt, with expectations of BD maintaining a healthy leverage position. The acquisition's closure is anticipated before the end of the calendar year, pending customary regulatory reviews and closing conditions.

Upon completion, Critical Care will operate as a separate business unit within BD's Medical segment, maintaining its base in Irvine, California. Katie Szyman, who has led Critical Care since 2015, will continue to head the business unit, reporting to Mike Garrison, Executive Vice President and President of BD Medical.

This acquisition marks a significant milestone in BD's BD2025 strategy, emphasizing growth-enhancing and value-creating tuck-in M&A as a key component of its targeted financial profile. The combination of BD and Edwards Lifesciences' Critical Care product group is set to advance the world of health by developing innovative technologies and solutions that improve both clinical therapy for patients and the clinical process for healthcare providers.

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