Becton, Dickinson and Company (NYSE:BDX) has agreed to acquire Edwards Lifesciences’ (NYSE:EW) Critical Care product group for $4.2B in cash to expand its portfolio of smart connected care solutions.
The transaction is expected to close before the end of the calendar year and is subject to customary regulatory reviews and closing conditions.
Critical Care specializes in advanced patient monitoring technologies, with its solutions currently used in more than 10,000 hospitals globally. The business generated more than $900M in revenue in 2023.
Upon closing, Critical Care will operate as a separate business unit within BD’s Medical segment to align with its smart connected care approach, and it will maintain its presence in Irvine, California.
The deal is expected to be immediately accretive to all key financial measures, including BD’s revenue growth, adjusted gross and operating margins, and adjusted earnings per share.
Critical Care’s long-term financial profile is also expected to deliver durable revenue growth of approximately 6% to 7%, with year-one adjusted gross margin of at least 60% and adjusted operating margins of at least 25% that increase over time.