Becton Dickinson Divests Surgical Instrumentation Segment to Steris for $540 Million
June 20 2023 - 9:02AM
Dow Jones News
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)
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