BD buying California health care technology firm for 12.2B

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Franklin Lakes-based medical technology company BD announced Monday that it has reached an agreement to acquire health care technology firm CareFusion for $12.2 billion.”BD’s acquisition of CareFusion allows us to align our highly complementary technologies and products to address unmet needs in the growing $20 billion global medication management industry, which leverages BD’s world-wide infrastructure,” Vincent A. Forlenza, BD’s chairman, CEO and president, said in a prepared statement. “It accelerates BD’s transition from a product-focused company to a customer-centric provider of innovative health care solutions with leading scale across the medication management value chain and expanded solutions for patient safety.”

BD and CareFusion said in a news release that BD will pay $58 a share in cash and stock for the San Diego-based company. CareFusion stockholders will receive $49 in cash and 0.0777 of a share of BD stock per CareFusion share, BD said. The deal has been unanimously approved by both firms’ boards of directors.

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“The combination of the two companies’ complementary product portfolios will offer integrated medication management solutions and smart devices, from drug preparation in the pharmacy, to dispensing on the hospital floor, administration to the patient and subsequent monitoring,” BD and CareFusion said in the release.

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

The transaction is scheduled to close in the first half of 2015, subject to regulatory approvals. BD Chief Operating Officer William A. Kozy will lead an integration team to ensure a smooth transition, the companies said. CareFusion will operate as part of BD’s Medical unit, and BD will maintain a presence in San Diego.

Goldman, Sachs & Co. served as financial adviser to BD, while Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel. Perella Weinberg Partners LP and Barclays Plc served as financial advisers to CareFusion, while Wachtell, Lipton, Rosen & Katz served as its legal adviser.

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