By Adriano Marchese

 

Medical technology company Becton Dickinson will sell its surgical instrumentation platform to Ireland-based medical equipment company Steris for $540 million.

The Franklin Lakes, New Jersey-based company said the divestiture of its surgical instrumentation, laparoscopic instrumentation and sterilization container assets is part of the company's push to simplify its product portfolio and manufacturing network, and is a critical part of its strategy going into 2025.

"This strong value-creating transaction supports the achievement of BD's 2025 financial goals, including revenue growth and margin expansion," the company said.

The divestiture will include products provided under the brands V. Mueller, Snowden-Pencer and Genesis as well as three plants located in St. Louis, Missouri, Cleveland, Ohio and one in Tuttlingen, Germany.

Becton Dickinson said that it expects about 360 employees that maintain and support the platform will transfer over to Steris.

On the other side of the deal, Steris said that the acquisition strengthens, complements and expands the company's product offerings within the healthcare segment.

Steris projects that annual revenue for these assets is projected to contribute about $170 million to Becton Dickinson's fiscal 2023 results with adjusted earnings before interest and taxes of approximately $45 million.

Steris also anticipates to qualify for a tax benefit related to tax deductible goodwill with a present value of about $60 million.

The transaction is expected to close before Sept. 30 of this year.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

June 20, 2023 08:47 ET (12:47 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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