BD to Acquire Edwards Lifesciences' Critical Care Unit for $4.2 Billion

Monday, June 03, 2024

BD and Edwards Lifesciences have entered into a definitive agreement for BD to acquire Edwards' Critical Care product group for $4.2 billion in cash.

This move is aimed at expanding BD's portfolio of smart connected care solutions and creating new value opportunities.

Critical Care, a leader in advanced monitoring solutions, is recognized for its innovative hemodynamic monitoring technologies and advanced AI algorithms.

These solutions, utilized in over 10,000 hospitals worldwide, offer real-time insights into cardiovascular conditions for critically ill patients, contributing to improved outcomes.

With around 4,500 employees, primarily based in Irvine, California, Critical Care generated over $900 million in revenue in 2023. Its portfolio includes the well-known Swan Ganz pulmonary artery catheter, alongside various sensors and monitors powered by advanced data analytics and AI.

The acquisition is anticipated to immediately bolster BD's key financial metrics, including revenue growth, adjusted gross and operating margins, and adjusted earnings per share.

Critical Care's financial outlook suggests sustained revenue growth, with expected margins of at least 60% for adjusted gross margin and 25% for adjusted operating margins.

BD plans to finance the acquisition with $1 billion in cash and $3.2 billion in new debt, aiming to achieve its long-term net leverage target within 12 to 18 months post-closing.

The transaction is subject to regulatory approvals and customary closing conditions, with an expected completion before the end of the calendar year.



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