Becton, Dickinson (BD) is set to buy C. R. Bard in a $24 billion deal, according to the two companies.

This brings together both medical device makers in an acquisition, approved by the board of directors of both companies, that is set to pay $317 for each Bard common share in cash and stock.

“Combining with Bard will accelerate our ability to offer more comprehensive, clinically relevant solutions to customers and patients around the globe, creating a strong partner for health care providers who are increasingly focused on delivering better outcomes at a lower total cost,” said Vince Forlenza, BD’s chairman and chief executive officer, in a statement, adding that expectations are for “the transaction to contribute meaningfully to BD’s plans for revenue growth and margin expansion, and generate outstanding value both near- and long-term for shareholders.”

The companies stated that the deal should combine BD’s medication management and infection prevention capabilities with Bard's existing portfolio and pipeline of new products.

“We also believe that we can expand our access to customers and patients through BD’s strategic selling capabilities, and that our fast-growing portfolio in emerging markets can significantly benefit from their well-established international commercial infrastructure,” said Tim Ring, Bard’s chairman and chief executive officer.

BD anticipated creating a “third segment within the company, to be called BD Interventional, to which the Bard business will report operationally and financially.

To that end, BD has also announced that Tom Polen, 43, now the executive vice president and president of the BD Medical Segment, will become president of BD, effective immediately. “In his new role, Mr. Polen will oversee BD’s Medical and Life Sciences segments, as well as the new Interventional segment,” the company said in a statement.

"Tom brings a deep understanding of BD, the medical technology industry and the global health care environment," said Forlenza. "His well-deserved promotion reflects his leadership in developing and implementing BD Medical's strategy and vision, his proven track record of delivering strong performance, and his commitment to ensuring the ongoing success of BD and its associates.”

The transaction is expected to improve BD’s gross margins by approximately 300 basis points in fiscal year 2018, boost BD’s earnings per share growth-trajectory to the mid-teens, and create strong cash flow, according to company projections.

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