BD announces acquisition of CareFusion

BD has announced it is to acquire rival medical technology and drug company CareFusion in a $12.2 billion (7.6 billion pounds) cash plus stock deal.

The two firms have agreed a merger that will see CareFusion shareholders receive $49 in cash and 0.07 BD shares for each share held.

Both companies are considered to be leaders in medication management, the industry responsible for helping pharmacies and hospitals ensure drugs are manufactured correctly, stored and delivered safely, and dispensed to the patient effectively. 

BD specialises in catheters and syringe, while CareFusion's key products are dispensing systems and pumps.

Vincent Forlenza, chief executive of BD, said: “Medication management is a $20 billion industry. The CareFusion deal doubles our addressable market to $16 billion by taking two leaders in subsets to become an overall leader.”

Around 60 per cent of BD's sales are from outside the US and Mr Forlenza noted the new venture will look to take CareFusion's products to new markets, as the company currently achieves more than three-quarters of sales domestically and very little in emerging economies.