US-based Becton Dickinson (BD) has entered a definitive agreement to buy CR Bard for $24bn.
The firms will create a combined company to deliver healthcare solutions to both patients and care providers.
The acquisition will leverage BD's experience in medication management and infection prevention, while Bard's portfolio of products will bolster BD's opportunities in clinical areas.
Both the firms are expected to boost growth opportunities in non-US markets for the combined company.
BD chairman and CEO Vince Forlenza said: "Combining with Bard will accelerate our ability to offer more comprehensive, clinically relevant solutions to customers and patients around the globe, creating a strong partner for healthcare providers who are increasingly focused on delivering better outcomes at a lower total cost.
"Our two purpose-driven organisations are well-aligned strategically, sharing a strong track record of performance and a deep commitment to addressing unmet needs in today's challenging healthcare environment."
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It is estimated that the transaction will be immediately accretive and will generate around $300m annual, pre-tax, run-rate cost synergies by the 2020 fiscal year.
Brad's vascular access products such as peripherally inserted central catheters (PICCs), midlines and drug delivery ports combined with BD's IV drug preparation, dispensing, delivery and administration, will allow the new company to offer medication management solutions.
The combined healthcare-associated infections (HAIs) solutions will enable the combined company to better address surgical site infections (SSIs) and catheter-related bloodstream infections (CRBSIs).
It is expected that Bard will also enhance BD's offerings in peripheral vascular disease, urology, hernia, surgery, and oncology.
The transaction is estimated to be closed later this year, subject to customary closing conditions, Bard shareholder, and regulatory approvals.
Image: BD to acquire Brad. Photo: courtesy of stockimages via FreeDigitalPhotos.net.