Axios Pro Exclusive Content

BD buying Edwards Lifesciences’ critical care unit for $4B

headshot
Jun 3, 2024
Illustration of a stopwatch shaped and colored like a red medical cross.

Illustration: Annelise Capossela/Axios

Becton Dickinson and Co. agreed to buy Edwards Lifesciences' critical care division for $4.2 billion in cash.

Why it matters: The purchase, one of BD's largest, will boost the New Jersey med tech's capabilities in AI-driven medical monitoring.

Zoom in: Edwards' critical care division invented hemodynamic monitoring, or blood circulation assessment, per the WSJ.

  • The division employs roughly 4,500 people, mostly in Irvine, California, and generated more than $900 million in revenue last year, according to a release.
  • BD will fund the deal using roughly $1 billion in cash and $3.2 billion in new debt, per the release.

How it (will) work: The deal gives BD access to a range of medical devices within the Edwards unit, including a variety of monitors, a pulmonary catheter and sensors for tissue oximetry.

  • Edwards VP of critical care Katie Szyman will lead the business, which will operate as a separate unit within BD.

Context: BD has been an active dealmaker since the early '90s, with several purchases in the billion-dollar range.

What they're saying: "The transaction is expected to be immediately accretive to all key financial measures with a strong return profile," BD CEO Tom Polen said in the release.

What's next: The transaction is expected to close before the end of the calendar year.

State of play: Med tech has been a dealmaking hotspot of late, with financial and strategic buyers making moves.

  • Boston Scientific in January agreed to acquire incontinence treatment device maker Axonics for $3.7 billion.
  • In February, Thomas H. Lee Partners agreed to buy medical products company Agiliti for a $2.5 billion take-private deal.
  • Labcorp in April agreed to acquire assets from bankrupt genomic company Invitae for $239 million.
Go deeper