Recently, Becton, Dickinson (BDX) signed an agreement to sell some assets of BD Medical segment to a private equity firm, RoundTable Healthcare Partners, and two of its portfolio companies, Argon Medical Devices, Inc. and Aspen Surgical Products. However, financial details of the deal were not disclosed.
The assets to be sold included the Ophthalmic Systems unit, the surgical blades, critical care and extended dwell catheter product platforms of Becton’s Medical Surgical Systems unit. The transaction, expected to be completed by the fourth quarter of 2010, is awaiting regulatory approvals.
The planned sale of assets is likely to result in a gain during the fourth quarter of 2010. Becton’s asset groups, with estimated revenues of $200 million and EPS of 20-24 cents in 2010, have been classified as discontinued operations.
Becton offers hypodermic syringes and needles for injection; insulin syringes, pen needles, and blood glucose monitoring systems for diabetes care; infusion therapy devices; prefillable drug delivery systems; surgical blades and scalpels; and thermometers through BD Medical. This segment also offers safety-engineered sharps products (injection, infusion, and surgery devices) and anesthesia, ophthalmology, critical care, medication management, and sharps disposal products.
Becton also operates through BD Diagnostics and BD Biosciences. For the second quarter ended March 2010, the three segments recorded revenues of $967 million, $556 million and $322 million, respectively. Under BD Medical, Medical Surgical Systems, Pharmaceutical Systems, Diabetes Care and Ophthalmic Systems generated sales of $506 million, $252 million, $188 million and $21 million, respectively.
Subsequent to the sale of its non-core assets, Becton will be able to focus on parenteral medication delivery.
Read the full analyst report on “BDX”
Zacks Investment Research
