Franklin Lakes-based BD (Becton, Dickinson and Co.) said May 6 it plans to separate its Diabetes Care business into an independent publicly-traded company (“NewCo”).
“The decision to spin off our Diabetes Care business is part of our active portfolio management and consistent with our BD 2025 strategy to Grow, Simplify and Empower,” said Tom Polen, chairman, chief executive officer and president of BD. “The spin-off will allow BD to strengthen its growth profile, enables a greater investment focus on our other core businesses and high-growth opportunities, and makes a greater impact for our customers and patients.”
The transaction is expected to be completed in the first half of calendar year 2022.
As a standalone public company, BD said it believes NewCo will be better positioned to leverage its leadership position in insulin delivery to advance vital, innovative solutions to the large and growing number of people living with diabetes worldwide.
The spin-off will create two independent companies with standalone investment characteristics, with an enhanced focus on strategic, operational and financial drivers to accelerate revenue growth and optimized product portfolios to better meet customer and patient needs.
BD management expects that, as a separate independent entity, NewCo will be better positioned to pursue its strategic priorities, build on its current leadership positions in the diabetes care market, and attract new investors.
Following the spin-off, BD will maintain category leadership positions across its portfolio in the BD Medical, BD Life Sciences and BD Interventional segments.
The spin-off does not impact BD’s ability to fulfill its orders related to COVID-19 mass vaccination campaigns.
Devdatt (Dev) Kurdikar, 52, a seasoned leader with extensive medical device experience and currently worldwide president of BD Diabetes Care, was announced as CEO of NewCo. He joined BD in February 2021.
“I am honored to be selected to lead NewCo and excited by the opportunities ahead to create additional value for our patients, customers and BD shareholders, as well as new opportunities for our passionate associates,” said Kurdikar. “BD has a long history of serving people with diabetes globally. As the CEO of NewCo, I plan to build on our strong foundation and drive growth by investing in innovation and allocating our capital to pursue strategic growth opportunities. I am fully confident that, as a standalone business, NewCo will have the flexibility to invest in the right areas to become a more nimble, agile and innovative company in the rapidly growing diabetes space.”
Also on board, Jacob (Jake) Elguicze, 47, former treasurer and head of investor relations for Teleflex, who joined BD in May and will be chief financial officer of NewCo. Elguicze has extensive experience in treasury, financial planning, reporting and analysis, and investor relations. He is a CPA and began his career in public accounting with Coopers Lybrand before spending eight years at Motorola in operating finance roles. Elguicze joined Teleflex in 2006 to build out the financial planning and analysis function. He assumed responsibility for investor relations in 2009 and added the treasurer role in 2011, where he transformed the capital structure to support the company’s new M&A strategy.
Perella Weinberg Partners LP; Morgan Stanley & Co. LLC; Wachtell, Lipton, Rosen & Katz; Skadden, Arps, Slate, Meagher & Flom LLP; Baker McKenzie; and PricewaterhouseCoopers are acting as advisors to BD in connection with the transaction.