Wired News - The U.S. FTC Conditionally Approves Becton, Dickinson and Co.'s Takeover of C.R. Bard
LONDON, UK / ACCESSWIRE / December 27, 2017 / Active-Investors.com has just released a free research report on Becton, Dickinson and Co. (NYSE: BDX) ("BD"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BDX as the Company's latest news hit the wire. On December 22, 2017, the Company, a leading global medical technology organization, declared that the U.S. Federal Trade Commission ("FTC") has approved its acquisition of C.R. Bard (NYSE:BCR), contingent on BD divesting its soft tissue core needle biopsy portfolio, and C.R. Bard divesting its Aspira line of tunneled home drainage catheters and accessories. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Becton, Dickinson most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=BDX
Potential Merger Could Affect Market Competition
BD is a global medical technology leader that works towards advancing the world of health by improving medical discovery, diagnostics, and the delivery of care. On the other hand, C.R. Bard is a leading multinational developer, manufacturer, and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology, and surgical specialty products.
The U.S. FTC has put such a condition because it believes that the proposed $24 billion merger could negatively affect competition by combining the top two suppliers in the U.S. markets for tunneled home drainage catheter systems and soft tissue core needle biopsy devices. Thus, in November 2017, BD entered into a definitive agreement to sell its soft tissue core needle biopsy product line and C.R. Bard's Aspira® product line of tunneled home drainage catheters and accessories to Utah-based medical device supplier, Merit Medical Systems, Inc., contingent on the completion of the BD acquisition of C.R. Bard.
Comments from BD's Leadership
In this regard, BD stated that the U.S. FTC's approval would bring it closer to full regulatory clearance of the C.R. Bard acquisition. Vincent A. Forlenza, Chairman and Chief Executive Officer (CEO) of BD, shared that he expects the C.R. Bard acquisition to close by December 2017. The transaction is still pending approval by the Ministry of Commerce of the People's Republic of China (MOFCOM) and the satisfaction of customary closing conditions.
About BD's Acquisition of C.R. Bard
On April 23, 2017, BD entered into a definitive agreement with C.R. Bard wherein it will acquire C.R. Bard for $317.00 per C.R. Bard's common share in cash and stock, which implies a total consideration of $24 billion.
Strategic Benefits of the Acquisition
The combination of BD and C.R. Bard will create a highly differentiated medical technology Company uniquely positioned to improve the process of care, and the treatment of disease for patients and healthcare providers. The deal would help BD expand its focus on the treatment of diseases beyond diabetes, to include peripheral vascular disease, urology, hernia, and cancer.
The transaction would capitalize on BD's leadership position in medication management and infection prevention with an expanded offering of solutions across the care continuum. Alongside, C.R. Bard's strong product portfolio and innovation pipeline will also enhance BD's opportunities in the fast-growing clinical areas. Moreover, the acquisition is expected to enhance growth opportunities for the combined Company in non-US markets.
Financial Implications
BD expects this financially compelling transaction to be immediately accretive to earnings. It would generate high-single digit accretion to adjusted earnings per share (EPS) in the fiscal year 2019.
The Company estimates that the transaction would generate annual, pre-tax, run-rate cost synergies of approximately $300 million by the fiscal year 2020.
Moreover, BD is also expected to benefit from revenue synergies beginning in the fiscal year 2019.
It is expected that the transaction would increase BD's gross margins by approximately 300 basis points in the fiscal year 2018; increase BD's EPS growth trajectory to the mid-teens; and generate strong cash flow.
Stock Performance Snapshot
December 26, 2017 - At Tuesday's closing bell, Becton, Dickinson's stock slightly declined 0.10%, ending the trading session at $217.02.
Volume traded for the day: 469.91 thousand shares.
Stock performance in the last three-month – up 11.68%; previous six-month period – up 11.30%; past twelve-month period – up 30.36%; and year-to-date - up 31.09%
After yesterday's close, Becton, Dickinson's market cap was at $49.60 billion.
Price to Earnings (P/E) ratio was at 46.65.
The stock has a dividend yield of 1.38%.
The stock is part of the Healthcare sector, categorized under the Medical Instruments & Supplies industry. This sector was up 0.1% at the end of the session.
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