- Expands BD Transformative Solutions to Provide New
Pharmacy Automation Technologies for Hospitals,
Retail Pharmacy, Long-Term Care and Home Settings
- Advances BD 2025 Strategy to Accelerate Innovation in
Smart, Connected Care and Enable New Care Settings
- Expected to be Immediately Accretive to Revenue Growth,
Adjusted Operating Margins and Adjusted EPS; Enhances Ability to
Achieve Long-Range Sales and Earnings Growth Profile
FRANKLIN
LAKES, N.J. and DURHAM,
N.C., June 6, 2022 /PRNewswire/ -- BD (Becton,
Dickinson and Company) (NYSE: BDX), a leading global medical
technology company, and Frazier Healthcare Partners, a leading
private equity firm focused exclusively on the health care sector,
today announced a definitive agreement for BD to
acquire Parata Systems, an innovative provider of pharmacy
automation solutions, for $1.525
billion.
Parata's portfolio of innovative pharmacy automation solutions
power a growing network of pharmacies to reduce costs, enhance
patient safety and improve the patient experience. Significant
macro trends such as clinician shortages, wage inflation,
centralization of pharmacy services and increased clinical demands
on pharmacists are driving demand for intelligent workflow
solutions. Through the use of automation and advanced software,
pharmacists can focus more of their time on higher value clinical
work and patient interactions to help improve medication adherence,
medication safety and patient outcomes. The transaction will be
complementary to BD's solutions in medication management with a new
set of technologies across the care continuum, including acute care
health systems, retail pharmacies, long-term care and home
settings. Parata provides BD access to a new $600 million pharmacy automation market segment
that is expected to grow approximately 10% annually to $1.5 billion in the U.S. alone over 10 years.
Together with BD, the company expects Parata's solutions to outpace
market growth through BD's commercial footprint, global scale and
innovation capabilities.
"Parata expands BD's solutions to a new area of the high-growth
pharmacy automation space and is a prime example of BD executing
our disciplined M&A strategy," said Tom
Polen, chairman, chief executive officer and president of
BD. "Parata has a highly attractive financial profile and
compelling value proposition that meets all of our rigorous
investment criteria on growth, profitability and returns. With the
addition of Parata, BD further advances our 2025 growth strategy
around smart, connected care and enabling new care settings. We
look forward to welcoming the talented Parata team to BD."
Rob Kill, chief executive officer
of Parata added, "BD and Parata share a common purpose with closely
aligned cultures. We are very proud of the company the team has
built at Parata over the past 21 years and feel BD is a great home
for our company, innovative solutions and technology, and Parata's
team members. The combination with BD will further advance our
purpose of powering pharmacies to help people lead healthier
lives."
Transaction Highlights
The $1.525 billion all-cash
transaction is expected to close by the end of the first half of
BD's fiscal year 2023, subject to the satisfaction of customary
closing conditions, including receipt of regulatory clearances. The
transaction is consistent with BD's disciplined and balanced
capital allocation strategy, including its financial policy
framework to manage capital deployment around its 2.5 times net
leverage target.
Parata's revenue for the last 12-month period, ended
March 31, 2022, was approximately
$220 million. The transaction is
expected to be immediately accretive to revenue growth, adjusted
operating margin and adjusted earnings per share and exceed BD's
2025 sales growth and margin targets, enhancing the company's
ability to achieve its long-range targeted growth profile. The
impact associated with transaction diligence costs will be managed
within BD's current fiscal 2022 guidance range. Additional
information on the transaction is available on the Investor page on
BD.com.
About BD
BD is one of the largest global medical
technology companies in the world and is advancing the world of
health by improving medical discovery, diagnostics and the delivery
of care. The company supports the heroes on the frontlines of
health care by developing innovative technology, services and
solutions that help advance both clinical therapy for patients and
clinical process for health care providers. BD and its 75,000
employees have a passion and commitment to help enhance the safety
and efficiency of clinicians' care delivery process, enable
laboratory scientists to accurately detect disease and advance
researchers' capabilities to develop the next generation of
diagnostics and therapeutics. BD has a presence in virtually every
country and partners with organizations around the world to address
some of the most challenging global health issues. By working in
close collaboration with customers, BD can help enhance outcomes,
lower costs, increase efficiencies, improve safety and expand
access to health care. For more information on BD, please visit
bd.com or connect with us on LinkedIn at
www.linkedin.com/company/bd1/ and Twitter @BDandCo.
About Parata Systems
Parata provides pharmacy technology solutions to reduce costs,
enhance patient safety and improve the patient experience by
offering a comprehensive pharmacy automation portfolio with
medication adherence packaging, high-speed robotic dispensing
technologies and pharmacy workflow solutions. Discover how Parata
powers pharmacies to help people lead healthier lives at
parata.com.
About Frazier Healthcare Partners
Founded in 1991,
Frazier Healthcare Partners is a leading private equity firm
focused exclusively on the healthcare sector. With over
$7.1 billion in total capital raised,
Frazier has invested in more than 200 companies with transaction
types ranging from buyouts of profitable healthcare services
companies to venture capital and company creation. Frazier has a
philosophy of partnering with strong management teams while
leveraging its internal operating resources and network to build
exceptional companies. Frazier has offices in Seattle, WA, and Menlo Park, CA, and invests broadly across the
U.S., Canada, and Europe. For more information about Frazier
Healthcare Partners, visit www.frazierhealthcare.com.
FORWARD LOOKING STATEMENTS
This press release contains
certain estimates and other forward-looking statements (as defined
under Federal securities laws). Forward looking statements
generally are accompanied by words such as "will", "expect", or
similar words, phrases or expressions. These forward-looking
statements include statements regarding the estimated or
anticipated future results of BD and anticipated benefits of the
proposed acquisition of Parata, the expected timing of completion
of the transaction, future growth in Parata's relevant market
segments, and other statements that are not historical facts.
These statements are based on the current expectations of BD
management and are subject to a number of risks and uncertainties
regarding Parata's business and the proposed acquisition, and
actual results may differ materially from any anticipated results
described, implied or projected in any forward-looking
statement. These risks and uncertainties include, but are not
limited to, the ability of the parties to successfully close the
proposed acquisition, including the risk that the required
regulatory approvals are not obtained, are delayed or are subject
to unanticipated conditions that could adversely affect the
combined company or the expected benefits of the transaction; risks
relating to the integration of Parata's operations, products and
employees into BD and the time and resources required to do so and
the possibility that the anticipated synergies and other benefits
of the proposed acquisition will not be realized or will not be
realized within the expected timeframe; the loss of key senior
management or other associates; competitive factors, including the
development of new technologies by other companies and pricing and
market share pressures; changes in healthcare or other governmental
regulation; risks relating to the ability to maintain favorable
supplier arrangements and relationships; changes in regional,
national or foreign economic conditions, as well as other factors
discussed in BD's filings with the Securities Exchange
Commission. BD does not intend to update any forward-looking
statements to reflect events or circumstances after the date
hereof, except as required by applicable laws or regulations. Any
reference herein to the financial performance guidance provided by
BD on May 5, 2022 is not intended as
an update or affirmation of such guidance. Such guidance will
not be updated or affirmed unless and until we publicly announce
updated or affirmed guidance.
Contacts:
BD
Media:
Troy Kirkpatrick
VP, BD Public Relations
858.617.2361
Troy.kirkpatrick@bd.com
Investors:
Francesca DeMartino
SVP, Head of BD Investor Relations
201.847.5743
Francesca.demartino@bd.com
Frazier Healthcare Partners
Carol Eckert
VP of Investor Relations
206.621.7200
carol.eckert@frazierhealthcare.com
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SOURCE BD (Becton, Dickinson and Company)