In its announcement of the deal, BD isn’t disclosing the price, but says the transaction values the business at nearly $500 million. The transaction is expected to close late in BD’s fiscal year 2016, which ends on Sept. 30, or early in its fiscal year 2017, and it is subject to regulatory approval.
Apax and BD will split ownership of the new company, 50.1 percent to 49.9 percent, and the company will have an estimated annual revenues of $900 million and more than 5,000 employees. The respiratory business includes products for patients on ventilators or with tracheostomies, resuscitation, oxygen therapy, nebulizers, baby incubators, cardiopulmonary exercise testing, pulmonary testing and sleep therapy. The new company will also take over locations in Yorba Linda and Palm Springs, California; Plymouth, Minnesota; Mexicali, Mexico; Cotia, Brazil; Hoechberg, Germany and Shenzen, China.
BD, headquartered in Franklin Lakes, New Jersey, reported revenues of $2.99 billion for its fiscal quarter ended Dec. 31, 2015. Besides the respiratory division, BD sells products for diabetes care, medical lab testing, drug delivery, infection control, disease diagnosis, surgical procedures and other areas.