Dive Brief:
- Becton Dickinson has agreed to sell its Advanced Bioprocessing business to Thermo Fisher Scientific for an undisclosed amount, the two companies announced. The business makes products used in manufacturing processes for biopharmaceuticals.
- Divesting the unit will allow Becton Dickinson to better focus its Life Sciences division on disease and therapy research and clinical diagnostics, Patrick Kaltenbach, president of that division, said in a statement.
- Thermo Fisher Chief Operating Officer Mark Stevenson said the acquisition complements its existing lineup of products for the fast-growing biologic drug market, from development through large-scale production. The business will be folded into Thermo Fisher’s Life Sciences Solutions unit.
Dive Insight:
Hospital supplier Becton Dickinson has been busy reshaping its portfolio, most notably with the 2017 acquisition of medical device maker C.R. Bard for $24 billion. Earlier this year, Franklin Lakes, N.J.-based Becton also divested its remaining investment in respiratory care specialist Vyaire Medical for $435 million. In 2015, Becton bought CareFusion to expand its medication management and patient safety businesses.
In announcing the sale, Kaltenbach emphasized that Becton Dickinson remains committed to its customers in the clinical, life sciences and industrial segments and will continue to sell all of its media product offerings.
The Advanced Bioprocessing business generates $100 million in annual revenue and is expected to contribute 13 to 15 cents to Becton’s per-shares earnings in fiscal year 2018, the company said. The deal is projected to close in early 2019.
Thermo Fisher, based in Waltham, Mass., said it is acquiring a business that "combines a strong technical services program with a variety of peptones that enhance cell culture media formulations to improve yield and reduce variability in biopharmaceutical applications." The products are used in the manufacture of more than 110 animal and human health biopharmaceuticals on the market.
The deal is Thermo Fisher's second acquisition this year. In June, the company announced plans to acquire the Gatan subsidiary of Roper Technologies for $925 million. Gatan makes instrumentation and software used in the operation of electron microscopes.
