Becton Dickinson (BDX) to Acquire Bard (BCR) for $317 (cash & stock) …
No, NOT that Bard!
Becton Dickinson (BDX), a leading global medical technology company, and C. R. Bard (BCR), a medical technology leader in the fields of vascular, urology, oncology and surgical specialty products, announced today a definitive agreement under which BD will acquire Bard for $317.00 per Bard common share in cash and stock, for a total consideration of $24 billion. The agreement has been unanimously approved by the Boards of Directors of both companies.
The combination will create a highly differentiated medical technology company uniquely positioned to improve both the process of care and the treatment of disease for patients and healthcare providers. The transaction will build on BD’s leadership position in medication management and infection prevention with an expanded offering of solutions across the care continuum. Additionally, Bard’s strong product portfolio and innovation pipeline will increase BD’s opportunities in fast-growing clinical areas, and the combination will enhance growth opportunities for the combined company in non-U.S. markets.
One of Eddy Elfenbein’s absolute faves, too …
- Textbook “Up, Straight and Parallel”
- Easy to make a case for 6-8% growth, a projected net margin of 20% and a P/E in the high teens. Remarkably consistent.
- Is $317 (cash + stock) a good price for the faithful shareholders in our community? Most companies are acquired at a premium — the acquirer will generally pay a price that delivers a ZERO or SUB–ZERO projected annual return (PAR) according to an updated analysis. (Unless you’re Warren Buffett) In this case, the $317 is a “sell” according to our analysis.