Irvine-based Edwards Lifesciences Corp. has agreed to sell its critical care unit for $4.2 billion in cash to Becton Dickinson & Co.
The unit has about 4,500 employees, with most based in Irvine, and generated more than $900 million in revenue last year, New Jersey-based Becton said in a statement Monday, June 3. Becton added that Critical Care will operate as a separate business unit and “will maintain its presence in Irvine.”
The transaction is expected to close before the end of the calendar year. Edwards have previously planned to spin off the unit as a separate company.
The Critical Care unit’s products include the Swan Ganz pulmonary artery catheter, minimally invasive sensors, tissue oximetry sensors and monitors. Katie Szyman, who has served as corporate vice president of critical care at Edwards since 2015, will lead the business within Becton.
Edwards CEO Bernard Zovighian said in a statement, “Edwards’ underlying rationale for separating Critical Care remains the same: we are laser focused on pursuing a strategy centered on structural heart disease. Our goal is to serve large unmet patient needs with our differentiated innovations while extending our global leadership, delivering sustainable growth and increasing shareholder value. We believe this transaction will strengthen Edwards, Critical Care and BD, paving the way for both companies to deliver even greater value to patients.”
The purchase will immediately add to Becton’s revenue growth, profitability and adjusted earnings per share, the company said. It plans to fund the deal with about $1 billion of cash and $3.2 billion of new debt.
“Critical Care expands BD’s portfolio of smart connected care solutions with its growing set of leading monitoring technologies, advanced AI-enabled clinical decision tools and robust innovation pipeline that complement BD’s existing technologies serving operating rooms and intensive care units,” said Tom Polen, CEO of the acquiring firm.
Jonathan Lansner of the Southern California News Group added to this report.
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