BD to buy CareFusion in $12.2 billion deal

Medical technology company BD has agreed to pay $12.2 billion in cash and stock to buy CareFusion, which sells products and services intended to improve healthcare safety.

Franklin Lakes, N.J.- based BD said the deal would give it a product portfolio that addresses the full spectrum of medication management—beginning with preparation in the pharmacy and extending through dispensing in the hospital and patient monitoring—which BD describes as a $20 billion business.

“It accelerates BD’s transition from a product-focused company to a customer-centric provider of innovative healthcare solutions with leading scale across the medication management value chain and expanded solutions for patient safety,” BD CEO Vincent Florenza said in a news release (PDF).

The boards of both companies have approved definitive agreement, which is subject to shareholder approval and regulatory review. The companies said they expect the deal to close in the first half of 2015.

BD secured $9.1 billion in bridge financing from Goldman Sachs to fund the transaction. BD shareholders would own about 92% of the combined company and CareFusion shareholders would own the rest.

CareFusion’s products include infusion pumps, IV connectors, surgical site preparations and data-mining tools for quality improvement.

CareFusion made headlines this year when it reached a $41 million agreement with the U.S. Justice Department resolving allegations of off-label marketing.

Federal officials alleged in the agreement that the company had paid $11.6 million to the leader of a National Quality Forum panel that endorsed the use of CareFusion’s ChloraPrep skin preparation product.

CareFusion would become part of BD’s medical segment, and BD Chief Operating Officer William Kozy has been assigned to lead the integration. BD would maintain a presence in San Diego, where CareFusion has its headquarters, the news release said.

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