Becton Dickinson (BD) has entered an agreement to divest two of its product lines and related assets to disposable medical devices maker Merit Medical Systems for $100m.
The move is in line with the regulatory review process of BD’s proposed purchase of CR Bard that is scheduled to close by the end of this year and subject to regulatory approvals.
As per the asset purchase agreement, Merit will acquire BD’s soft tissue core needle biopsy products marketed as Achieve Programmable Automatic Biopsy System, Temno Biopsy System, and Tru-Cut Biopsy Needles, along with Bard’s Aspira Pleural Effusion Drainage Kits and Peritoneal Drainage System.
While the biopsy products are available through direct sales and distribution partners in various markets, the Aspira product line is primarily sold in the US.
Intended to complement Merit’s CorVocet biopsy system and bone biopsy products, the transaction is expected to be accretive next year with estimated annual revenues of $42m-$48m.
Merit Medical Systems chairman and CEO Fred Lampropoulos said: “There are also a number of markets in which Merit has direct representation that will be expanded to include the acquired products, as well as new markets which we plan to develop.
“In summary, we believe this transaction will provide complementary high-margin products, increased use of our existing facilities, market expansion opportunities, accretive margins, profits and our existing sales force utilisation.”
The asset acquisition is subject to the completion of BD’s planned acquisition of Bard and other customary closing conditions.