Anyone operating in the medical equipment and technology sector should have an insight into this recently discovered ‘mother of all acquisitions.’ C.R. Bard, a medical device behemoth, has been sold to fellow giant company Becton, Dickinson and Company. Bard has agreed to function under the leadership of Becton Dickinson in a titanic deal of US$24.0 bn or thereabouts.
Companies that supply to hospitals and healthcare centers have attracted eyeballs after the mega deal. The eye-watering acquisition deal kicked Bard’s shares up to almost 20.0% on Monday. Bard will receive an approximately over 25.0% than its share close price of April 21, 2017. This means that Becton Dickinson will bless Bard with a handsome US$317.0 per share, which could be in cash and shares.
Medical Supply and Healthcare Sectors on Merger and Acquisition Spree
Pricing pressure and the need to expand product portfolio are the top reasons that the medical devices sector is witnessing a series of mergers and acquisitions. However, Bard has a different, rather positive, perspective this its acquisition by Becton Dickinson. It will look to leverage the superintendence of Becton Dickinson in infection prevention and medication management to offer worthwhile advantages to patients and customers.
A couple of years back, CareFusion Corp was acquired by Becton Dickinson for exactly half the price of the Becton Dickinson-Bard deal, whereas Abbott Laboratories had acquired St. Jude Medical, Inc. for a billion more than the mega deal price in January 2017.
The scenario of mergers and acquisitions is not merely followed by medical equipment companies, hospitals are also part of the strategy as they share office with larger centralized operations and health systems.