USA —Becton Dickinson (BD), a prominent global medical technology company, has announced its definitive agreement to sell its surgical instrumentation platform to Steris, an Ohio-based medical device firm specializing in infection prevention.
This move comes after BD’s active acquisition spree in 2022, which included the notable US$1.5 billion buyout of Parata Systems.
However, in 2023, BD has shifted its focus from expanding its portfolio to trimming down specific areas of its business.
The sale encompasses BD’s renowned brands, namely V. Mueller, Snowden-Pencer, and Genesis, along with three manufacturing facilities located in St. Louis, Cleveland, and Tuttlingen, Germany.
Upon the deal’s closure by the end of September, approximately 360 employees will transition to Steris, integrating with the newly acquired assets within Steris’ healthcare segment.
Steris, a company with a global workforce of 17,000 individuals, recorded global sales of US$4.96 billion and a net loss of US$27.9 million in its most recent fiscal year.
The assets included in the sale contribute to an annualized revenue of approximately US$170 million, as stated by BD.
The impact on BD’s adjusted earnings per share is expected to be “immaterial” if the transaction concludes within BD’s fiscal year 2023.
BD’s surgical instrumentation platform encompasses around 20,000 individual products, ranging from laparoscopic tools to sterilization containers.
Currently housed within BD’s surgery business, under the interventional segment umbrella, the sale of this unit aligns with BD’s ongoing “BD 2025” growth plan, emphasizing the “simplify” tenet.
By divesting the surgical instrumentation unit, BD aims to narrow its focus on core areas of its overall portfolio and manufacturing network.
The earnings generated from this transaction will be reinvested to support other rapidly growing sectors of the company.
Among BD’s three main divisions, namely medical, life sciences, and interventional segments, the interventional segment is the smallest.
In 2022, the interventional segment, which includes the surgery business housing the surgical instrumentation unit, brought in just under US$4.5 billion in revenues, accounting for less than a quarter of the company’s total revenue of US$18.87 billion.
Notably, the surgery business within the interventional segment demonstrated significant growth in 2022, achieving a revenue increase of 8% compared to the previous year, second only to the acquisition-heavy pharmaceutical systems unit, which experienced 9.5% growth.
By divesting the surgical instrumentation unit, BD aims to optimize its portfolio and manufacturing network, concentrating on high-growth sectors.
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