Becton Dickinson to sell Surgical Instrumentation platform to Steris for $540M

Becton, Dickinson and Company (BDX) announced that it has signed a definitive agreement to sell its Surgical Instrumentation platform to Steris (STE) for $540M. The divestiture will include V. Mueller, Snowden-Pencer and Genesis branded products and three manufacturing facilities located in St. Louis, Mo., Cleveland, Ohio and Tuttlingen, Germany. Approximately 360 employees who support this platform will transfer to Steris upon the completion of the transaction. The divestiture is expected to close within BD’s fiscal year 2023, ending Sept. 30, pending satisfaction of customary closing conditions and U.S. Federal Trade Commission regulatory approval. The Surgical Instrumentation platform is reported as part of the BD Surgery business within the BD Interventional segment. The assets included in the sale account for annualized revenue of approximately $170M. If the transaction closes as expected within BD’s fiscal year 2023, the impact to adjusted earnings per share would be immaterial. Other terms of the agreement were not disclosed. Additional commentary regarding this transaction will be provided during the company’s fiscal year 2023 third-quarter earnings conference call.