BD and CareFusion Announce $12.2 Billion Merger

Becton, Dickinson & Co is a New Jersey-based company that makes medical equipment. They recently have announced they are willing to pay $12.2 billion to acquire CareFusion Corp, a San Diego rival in an effort to focus their work on medication systems for pharmacies and for hospitals.

The two companies made the announced Sunday that Becton, Dickinson & Co will pay $58 per share of CareFusion's stock value. When all is said and done, the deal will close some time in the first six months of 2015; and at that time, investors in Becton, Dickinson & Co will have a 92% stake in the newly formed joint venture.

This merger is just the latest in a series of consolidations across the medical industries that join together the efforts of drug manufacturers and device makers in an effort to cut costs while simultaneously increasing sales. BD reports that with this merger, the new company will save $250 million by 2018.

Both companies have been working over the past couple of years to focus their development on new technology that will improve medication accuracy-which will minimize errors and other safety issues that can jeopardize the health of patients.

BD Chairman and chief executive Vincent A. Forlenza attests that this acquisition 'allows us to align our highly complementary technologies and products to address unmet needs in the growing $20 billion global medication management industry.'

And the best news is not only that the new company will save a lot of money or that pharmacies and hospitals will benefit from a more efficient and effective-and safe-way to conduct business, but the purchase and merger would improve the current stakes for CareFusion shareholders. $58 a share will be the new price, and that is 26 percent more than the existing stake. If profits go up and the company succeeds, it could encourage more companies to also look for more ways to improve business and cut costs.

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