Private equity firm Apax Funds will have a majority stake in the new company
Global medical technology firm BD (Becton, Dickinson and Company) is to sell 50.1% of its Respiratory Solutions business to private equity firm Apax Partners, and form a joint venture that will operate as a new, independent company.
The new company will include BD's Respiratory Solutions business, including product lines for ventilation, respiratory diagnostics, vital signs and AirLife. It will have an estimated annual revenue of US$900m.
BD's Respiratory Solutions manufacturing facilities will transfer to the new company, including plants in Yorba Linda and Palm Springs, CA; Plymouth, MN; Mexicali, Mexico; Cotia, Brazil; Hoechberg, Germany and Shenzen, China.
The new company will employ more than 5,000 people around the world. BD will retain 49.9% as a non-controlling minority owner.
BD's Respiratory Solutions manufacturing facilities will transfer to the new company
'We have been proactively targeting the industry for respiratory devices and have been impressed with the continued progress the company has made over the past few years,' said Steven Dyson, partner at Apax Partners. 'We are pleased to have the opportunity to work with the entire team in further developing respiratory solutions' position as a focused and leading global player. In order to take advantage of this opportunity, we are highly supportive of an investment programme to further strengthen the business's existing platform, both organically and through acquisitions.'
The transaction is expected to close in late fiscal year 2016 or early 2017.
'We have determined that the Respiratory Solutions business and its associates will be best served under a different ownership model that will provide more strategic focus and investment to grow the business into a pure-play, global respiratory care leader,' said Tom Polen, President of BD's Medical Segment. 'We believe in Apax Partners' track record of success creating value and improving margins, and as part of the joint venture, we will continue to have a strong interest in the growth and success of the business.'
The completion of the deal is subject to pending regulatory approval, consultations with employee representative bodies in Europe and customary closing conditions.