M&A News: BDX Snaps Up Edwards Life’s Critical Care Unit in $4.2B Deal

Medical technology giant Becton, Dickinson, and Co. (NYSE:BDX) is snapping up Edwards Lifesciences’ (NYSE:EW) critical care unit in a $4.2 billion deal. The move promises to make BDX a leading name in advanced monitoring technology.

Edwards Lifesciences’ Critical Care Unit

Edwards Lifesciences’ critical care product group is a leading name in advanced monitoring solutions. Its AI algorithms cater to millions of patients, and the unit’s hemodynamic monitoring offerings are used in over 10,000 hospitals globally. The unit garnered nearly $900 million in revenue last year.

Could Boost BDX’s Fortunes

This strategic acquisition boosts BDX’s offerings in smart connected care. Importantly, the unit’s monitoring and AI-driven solutions are complementary to BDX’s current product offerings in operating rooms and intensive care units (ICUs). The strategic M&A move could also lead to new avenues of growth and value creation for BDX, given the company’s global presence.

The all-cash deal is expected to be immediately accretive to BDX’s top line as well as bottom line.  Moreover, cost synergies and supply chain efficiencies are seen leading to a boost in margins for the company. BDX plans to fund the deal with $1 billion in cash and $3.2 billion in new debt. The acquisition remains subject to closing conditions and is anticipated to close by the end of 2024. Upon closing, the critical care unit will function as a separate unit within BDX’s Medical segment.

Meanwhile, EW plans to channel the proceeds from this deal towards its strategic growth investments, including fund outlays in aortic, mitral, tricuspid, and pulmonic patients, and interventional heart failure.

Is EW Stock a Buy, Sell, or a Hold?

Edwards Lifesciences’ share price has rallied by nearly 26% over the past six months. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average EW price target of $98.35.

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