Becton, Dickinson and Company -a medical technological firm- is looking to buy CareFusion, a company that provides products and services to hospitals for $12.2 Billion in cash and stock. Becton Dickinson has agreed to pay $58 a stock which is 26% above CareFusion’s closing price on Friday. The combination of the two companies will allow for the creation of one of the five biggest medical device companies in the world. “This is a perfect strategic fit,” Vincent A. Forlenza, BD’s chief executive, said in an interview. “We’re coming together to improve medication management, primarily in hospitals.” 

Becton Dickinson buys Carefusion

The merged company, according to Gallahue CareFusion’s chief executive, will help in the efforts to limit the rise of health care costs in the United States. Not only that, but by combining the two companies, Gallahue continues to say that there will be an increase in patient safety, a decrease in potential for mistakes, an increase in efficiency around the hospital, an improvement of quality in patient care, an increase in worker safety, as well as a decrease in health care costs by addressing unmet needs in the hospital. According to the reports CareFusion reported strong earnings in recent quarters – providing an even better deal to BD for the price of $12.2 Billion.

I believe the combination of the two companies Becton Dickinson and CareFusion will provide many positive results in the future. The two companies, being separate, would not have held as much benefit as the two together. In terms of the article, I believe BD made a good choice in buying the company, even at the price of $12.2 Billion. It seems to me that the two companies together will allow a significant increase in profit as the two seem to complement each other.

Article: http://dealbook.nytimes.com/2014/10/05/becton-dickinson-to-acquire-carefusion-for-12-2-billion/?_php=true&_type=blogs&ref=business&_r=0