BD To Sell Surgical Instrumentation Platform To STERIS For $540 Mln

(RTTNews) - Medical technology company Becton, Dickinson and Co. or BD (BDX) announced Tuesday that it has signed a definitive agreement to sell its Surgical Instrumentation platform to STERIS plc (STE) for $540 million.

The divestiture will include V. Mueller, Snowden-Pencer and Genesis branded products and three manufacturing facilities located in St. Louis, Missouri, Cleveland, Ohio and Tuttlingen, Germany. The assets included in the sale account for annualized revenue of approximately $170 million.

Approximately 360 employees who support this platform will transfer to STERIS upon the completion of the transaction. The divestiture is expected to close September end 2023, pending satisfaction of customary closing conditions and U.S. Federal Trade Commission (FTC) regulatory approval.

The Surgical Instrumentation platform is reported as part of the BD Surgery business within the BD Interventional segment.

The divestiture advances the "Simplify" pillar of the BD 2025 strategy and is an important step in simplifying BD's product portfolio and manufacturing network. The cash proceeds from the deal will be deployed consistent with BD's capital allocation priorities to enable a continued durable growth profile.