Becton Dickinson and Company’s $24 Billion Acquisition of C.R. Bard

Perella Weinberg Partners LP is acting as lead financial advisor to BD. Citi is also serving as a financial advisor to BD and will be providing fully committed financing. Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to BD. Goldman, Sachs & Co. served as financial advisor to Bard. Wachtell, Lipton, Rosen & Katz served as legal advisor to Bard.

BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, and C. R. Bard, Inc. (NYSE: 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.

This financially compelling transaction will be immediately accretive and is expected to generate high-single digit accretion to adjusted earnings per share (EPS) in fiscal year 2019. Approximately $300 million of estimated annual, pre-tax, run-rate cost synergies are expected by fiscal year 2020. Separately, BD also expects to benefit from revenue synergies beginning in fiscal year 2019. The transaction is expected to improve BD’s gross margins by approximately 300 basis points in fiscal year 2018, increase BD’s earnings per share growth trajectory to the mid-teens, and generate strong cash flow.

Skadden is representing Becton Dickinson with Paul Schnell (Picture), C. Michael Chitwood, Thomas Greenberg, Thomas Hughes, Erica Schohn, Sofie Bielen, Bruce Goldner, John Bentivoglio, Steven Messina, Laura Kaufmann Belkhayat, Clifford Aronson and Eric Sensenbrenner.

Epstein Becker Green attorneys led by Bradley Merrill Thompson provided health regulatory counsel to Becton Dickinson.

Wachtell Lipton Rosen & Katz is advising CareFusion with a team including David A. Katz, David K. Lam, Iliana Ongun, Nelson O. Fitts, Nathaniel L. Asker, Jeannemarie O’Brien, Erica E. Bonnett, Gregory E. Pessin, Neil M. Snyder, T. Eiko Stange and Michael Sabbah.

Fried Frank acted as counsel to Goldman Sachs, as financial advisor to C.R. Bard with teven Epstein and Philip Richter and Elizabeth Kalenik.

Shearman & Sterling is advising Perella Weinberg with Robert Katz.

Weil Gotshal & Manges is advising Goldman Sachs on the bridge loan provided to Becton Dickinson to finance the transaction with a team including Morgan Bale, Heather Viets, Rachel Trudeau, Jennifer Bensch, Jessica Wang, Raymond Gietz, Jennifer Cheng, John O’Loughlin, Thomas Goslin, Beatriz Azcuy-Diaz, William Horton, William Dong, Brian Hamano, Jeffrey Lieberman, Jeffrey Osterman and Claudia Hoeben.

 

Involved fees earner: Bradley Merrill Thompson – Epstein Becker & Green; Steven Epstein – Fried Frank Harris Shriver & Jacobson; Philip Richter – Fried Frank Harris Shriver & Jacobson; Elizabeth Kalenik – Fried Frank Harris Shriver & Jacobson; Morgan Bale – Weil; Heather Viets – Weil; Rachel Trudeau – Weil; Raymond Gietz – Weil; Jennifer Bensch – Weil; Jonathan Cheng – Weil; John O’Loughlin – Weil; Thomas Goslin – Weil; Beatriz Azcuy-Diaz – Weil; William Horton – Weil; William Dong – Weil; Jeffrey Osterman – Weil; David Katz – Wachtell, Lipton, Rosen & Katz; David Lam – Wachtell, Lipton, Rosen & Katz; Iliana Ongun – Wachtell, Lipton, Rosen & Katz; Nelson Fitts – Wachtell, Lipton, Rosen & Katz; Jeannemarie O’Brien – Wachtell, Lipton, Rosen & Katz; Erica Bonnett – Wachtell, Lipton, Rosen & Katz; Gregory Pessin – Wachtell, Lipton, Rosen & Katz; Neil Snyder – Wachtell, Lipton, Rosen & Katz; Eiko Stange – Wachtell, Lipton, Rosen & Katz; Michael Sabbah – Wachtell, Lipton, Rosen & Katz; Paul Schnell – Skadden Arps Slate Meager & Flom; Michael Chitwood – Skadden Arps Slate Meager & Flom; Thomas Greenberg – Skadden Arps Slate Meager & Flom; Thomas Hughes – Skadden Arps Slate Meager & Flom; Erica Schohn – Skadden Arps Slate Meager & Flom; Bruce Goldner – Skadden Arps Slate Meager & Flom; John Bentivoglio – Skadden Arps Slate Meager & Flom; Steven Messina – Skadden Arps Slate Meager & Flom; Clifford Aronson – Skadden Arps Slate Meager & Flom; Laura Kaufmann Belkhayat – Skadden Arps Slate Meager & Flom; Eric Sensenbrenner – Skadden Arps Slate Meager & Flom; Robert Katz – Shearman & Sterling;

Law Firms: Epstein Becker & Green; Fried Frank Harris Shriver & Jacobson; Weil; Wachtell, Lipton, Rosen & Katz; Skadden Arps Slate Meager & Flom; Shearman & Sterling;

Clients: Goldman, Sachs & Co.; Perella Weinberg Partners L.P.; Becton, Dickinson and Company; Becton, Dickinson and Company; CareFusion Corporation;

 

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Author: Ambrogio Visconti