WASHINGTON (dpa-AFX) - Medical technology company Becton, Dickinson and Co.
(BDX) announced Monday a definitive agreement to acquire Edwards Lifesciences'
(EW) Critical Care product group for $4.2 billion in cash.

In pre-market activity on the NYSE, Edwards shares were gaining around 3 percent
to trade at $89.49.

The transaction is expected to close before the end of the calendar year,
subject to customary regulatory reviews and closing conditions.

BD said the deal would be immediately accretive to all key financial measures,
including its revenue growth, adjusted gross and operating margins, and adjusted
earnings per share.

Irvine, California-based Critical Care, an advanced patient monitoring firm with
advanced AI algorithms, invented the hemodynamic monitoring category. Its
solutions are currently used in more than 10,000 hospitals globally. Critical
Care, with around 4,500 employees, generated more than $900 million in revenue
in 2023.

BD expects the purchase of Critical Care will unlock new value creation
opportunities and enhance its portfolio of smart connected care solutions.

Critical Care's long-term financial profile is also expected to deliver durable
revenue growth of approximately 6% to 7%. The company further projects year-one
adjusted gross margin of at least 60% and adjusted operating margins of at least
25% that increase over time.

BD expects to fund the all-cash transaction with around $1 billion of cash and
$3.2 billion of new debt.

Upon closing, Critical Care will operate as a separate business unit within BD's
Medical segment. Katie Szyman, who has served as corporate vice president of
Critical Care since 2015, will lead the new business unit within BD. Szyman will
report to Mike Garrison, executive vice president and president of the BD
Medical segment.

In the deal, Perella Weinberg Partners and Citi are acting as financial
advisers, and Ropes & Gray, LLP is providing legal counsel to BD.



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