BD to divest surgical instrumentation platform to STERIS for $540m
Becton, Dickinson and Company (BD) announced today it will sell its surgical instrumentation platform to STERIS, a key player in patient care and infection prevention, for a sum of $540 million.
The move is part of the BD 2025 strategy to simplify its product portfolio and manufacturing network, and it positions the company closer to its financial goals, including revenue growth and margin expansion.
The sale will include the V. Mueller, Snowden-Pencer, and Genesis branded products, along with three manufacturing facilities situated in St. Louis, Missouri, Cleveland, Ohio, and Tuttlingen, Germany.
As part of the agreement, approximately 360 employees who are currently supporting this platform will move to STERIS once the transaction is complete.
The divestiture is anticipated to be finalized within BD’s fiscal year 2023, ending September 30, subject to standard closing conditions and approval from the US Federal Trade Commission (FTC).
With over 20,000 SKUs in its portfolio and dedicated manufacturing sites, the Surgical Instrumentation platform has been a key component of BD’s Surgery business within the BD Interventional segment. The transaction, which contributes to the “Simplify” pillar of the BD 2025 strategy, aligns with the company’s capital allocation priorities to facilitate a sustained growth trajectory.
STERIS, with a global sales volume of $5 billion, is a major provider of products and services supporting patient care with an emphasis on infection prevention.
The acquisition of BD’s Surgical Instrumentation platform will enhance STERIS’s Healthcare segment, allowing the company to better serve hospitals and surgery centers’ product and service needs.
The assets incorporated in the sale generate an annualized revenue of approximately $170 million.
Rick Byrd — BD president of the Interventional segment said: “The Surgical Instrumentation platform has a 120-year legacy of providing reliable and trusted high-quality products, and STERIS is well positioned to maximize the value of this extensive portfolio and is fortunate to be adding such a dedicated and talented team to its organization.
“This transaction further advances the BD Interventional segment’s focus on high-growth end markets. We look forward to continuing to address unmet needs in health care through a highly differentiated and innovative set of solutions and products.”