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It was announced on Sunday that Becton Dickinson (BD) will acquire CareFusion for $12.2 billion. Once the transaction is complete, the combined company will become a global leader in medication management and patient safety solutions.
"The combination of the two companies will further enable us to deliver end-to-end solutions from drug preparation through dispensing and administration that increase efficiencies, reduce medication errors and improve patient safety in both hospitals and pharmacies," Vincent Florenza, chairman, CEO and president of BD, said in a conference call.
BD has a "significant international footprint" with a presence in almost every country around the world. "By leveraging our global infrastructure we believe we can create new growth opportunities for CareFusion's products outside of the U.S.," said Florenza.
The combined technologies and products will help to address the unmet needs in the expanding global medication management industry, which is worth $20 billion dollars.
The acquisition will also accelerate CareFusion's plans to create greater scale. "At CareFusion we held a consistent belief that in our areas of focus scale matters, particularly medication management, infection prevention, and in products for anesthesiology and respiratory care," Kieran Gallahue, chairman and CEO of CareFusion, said in a conference call.
Gallahue explained that the acquisition will also benefit CareFusion's employees. "We are combining with a company that is not only focused on growth and innovation but also focused on its employees," he said. "The vision we set for CareFusion and the values we live are aligned with BD and with its management team."
Gallahue did mention that this acquisition is a different path than the one they have been on for the past three years as they strengthened and simplified their company. "However, the combined opportunities for health care systems around the world are clear and compelling," he said.
BD has implemented an execution plan to make sure that the integration is smooth. An integration team made up of senior members from both companies will be led by William A. Kozy, chief operating officer of BD.
CareFusion will become a part of BD's Medical segment and BD will continue to have an active presence in San Diego, Calif., which is where the headquarters of CareFusion is located.
The transaction is expected to close in the first half of calendar year 2015.
