STERIS to Acquire Surgical Instrumentation Platform from BD
BD (Becton, Dickinson and Company), a prominent global medical technology company, has recently announced a definitive agreement to sell its Surgical Instrumentation platform to STERIS for a total of $540 million.
The divestiture encompasses renowned brands such as V. Mueller™, Snowden-Pencer™, and Genesis™, along with three manufacturing facilities situated in St. Louis, Mo., Cleveland, Ohio, and Tuttlingen, Germany. As part of the transaction, approximately 360 employees supporting this platform will transition to STERIS. The completion of the divestiture is expected within BD’s fiscal year 2023, concluding on September 30, subject to customary closing conditions and regulatory approval from the U.S. Federal Trade Commission (FTC). The Surgical Instrumentation platform is currently reported as part of the BD Surgery business within the BD Interventional segment.
This strategic divestiture aligns with BD’s “Simplify” pillar of the BD 2025 strategy, representing a significant step towards streamlining the company’s product portfolio and manufacturing network. The platform, which consists of three dedicated manufacturing sites and around 20,000 SKUs, will be divested in this value-creating transaction, supporting BD’s 2025 financial goals encompassing revenue growth and margin expansion. The cash proceeds obtained from the sale will be allocated in accordance with BD’s capital allocation priorities to sustain its continued durable growth profile.
STERIS, a leading global provider of products and services focused on infection prevention, will acquire the surgical instrumentation platform. With a global sales figure of $5 billion, STERIS employs over 17,000 dedicated professionals worldwide who collaborate to supply a wide range of infection prevention and procedural products and services, primarily catering to healthcare, pharmaceutical, medical device, and dental customers. The addition of BD’s surgical instrumentation platform will complement STERIS’s Healthcare segment, enhancing its ability to meet the product and service needs of hospitals and surgery centers.
Rick Byrd, President of the Interventional segment at BD, expressed confidence in STERIS’s ability to leverage the extensive portfolio of the Surgical Instrumentation platform. By acquiring such a committed and talented team, STERIS is well-positioned to maximize the value of this platform, which boasts a remarkable 120-year legacy of delivering reliable and high-quality products. This transaction further strengthens the BD Interventional segment’s focus on high-growth end markets, enabling the company to continue addressing unmet healthcare needs through a differentiated and innovative range of solutions and products.