BD Completes $250M Buy Of Infusion Systems Maker Caesarea Medical

By Jof Enriquez,
Follow me on Twitter @jofenriq

Becton Dickinson (BD) is buying the remaining 60 percent stake of Caesarea Medical Electronics (CME) to fully acquire the Israel-based manufacturer of infusion products, in a deal estimated to be worth $250 million. In 2015, BD acquired CareFusion, which owned a non-controlling, 40 percent stake in CME, purchased in 2014.

"Our relationship with BD has been very successful over the past two years, and this is the next logical step to elevate our infusion technologies," said Swi Barak, founder of CME, in a news release. "This transaction will create new opportunities for our people and our technology that we wouldn't have been able to achieve alone."

Financial details of the transaction were not disclosed. Sources of Israeli publication Globes, however, say that CME in recent years has generated annual revenue of at least $50-60 million and nearly $20 million in profit, and that BD's takeover of the company values CME at around $250 million.

CME's portfolio includes a range of ambulatory, home, and specialty acute care infusion and syringe pumps noted for their compact and portable designs, as well as related accessories and disposable administration sets for both home care and hospital settings. The acquisition strengthens BD's Medical business, which includes three divisions: Medication and Procedural Solutions (MPS), which includes Medication Management Consumables and Infection Prevention Solutions; Medication Management Solutions (MMS); and Diabetes Care and Pharmaceuticals.

The business generated overall revenue of $8.7 billion in fiscal 2016, according to Market Realist. Robust growth across all segments had driven sales and earnings past expectations during the first quarter of 2017.

BD’s purchase of CME also fits well with the company’s preference for tuck-in acquisitions and a new three-pronged strategy announced by CEO Vince Forlenza earlier this year that includes building a strong product pipeline and moving toward more complete healthcare solutions.

"The integration of CME's technology into BD will strengthen our strategy of reinventing medication management across the health care continuum," said Mike Garrison, VP and GM of worldwide Infusion Solutions for BD. "The acquisition of CME advances our mission to provide efficient end-to-end IV safety solutions across a broad journey of care."