Medical equipment supplier Becton Dickinson & Co has agreed to buy CareFusion Corp , a maker of infusion pumps and other medical devices, for $12.2 billion in cash and stock, marking the latest multibillion-dollar healthcare sector deal.
Cost-related healthcare reforms, including those mandated under President Barack Obama’s Affordable Care Act, have spurred consolidation for U.S. health systems and hospitals, the main customer for suppliers of medical equipment.
The acquisition aims to combine the companies’ complementary products for preparing, administering and monitoring medications. While Becton Dickinson produces products that deliver and administer medicines, CareFusion produces products to store the drugs and to deliver them, such as infusion pumps.
By combining the two companies, this creates a one stop shop for these products which could improve patient safety while reducing the costs to the consumer.
Becton said the transaction is expected to provide double-digit earnings growth in the first full year, and will be accretive to net earnings in fiscal year 2018.
PCL wonders, who really benefits from mergers of these large companies? Is it the Healthcare givers or the companies?
Your views welcome.