BD Signs Agreement to Sell Majority of Discovery Labware Unit
Advanced Bioprocessing Platform Excluded from Sale
FRANKLIN LAKES, N.J., April 10, 2012 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE:BDX), a leading global medical technology company, announced today that it has signed a definitive agreement to sell its BD Biosciences - Discovery Labware unit, excluding its Advanced Bioprocessing platform, to Corning Incorporated (NYSE:GLW), the world leader in specialty glass and ceramics. The transaction will be a cash sale for approximately $730 million, subject to post-closing adjustment for inventory balances.
"We are pleased that we found in Corning a buyer committed to growing sales for these components of our Discovery Labware unit, ensuring their ongoing success, and continuing to deliver value and service to customers," stated William A. Kozy, Executive Vice President. "This sale will enable our BD Biosciences segment to focus resources and management attention on both our recent Biosciences acquisitions and our recently launched new instrumentation products, which are essential to our accelerated growth efforts."
Drawing on more than 160 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Corning Life Sciences has been a leading developer, manufacturer and global supplier of scientific laboratory products for more than 90 years.
The transaction is expected to be completed by the end of calendar 2012, subject to the satisfaction of customary closing conditions, including consultations and regulatory approvals.
For the full fiscal year 2012, revenues and earnings per share associated with this asset group are forecasted at about $235 million and $0.23 to $0.27, respectively. The Company expects to record a gain on the sale when the transaction is completed.
BD is a leading global medical technology company that develops, manufactures and sells medical devices, instrument systems and reagents. The Company is dedicated to improving people's health throughout the world. BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, discovery and production of new drugs and vaccines. BD's capabilities are instrumental in combating many of the world's most pressing diseases. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs approximately 29,000 associates in more than 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. For more information, please visit www.bd.com.
This press release contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD's performance, including future revenues and earnings per share. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially from any forward-looking statement. These factors include, but are not limited to: the unknown consequences of healthcare reform in the United States, including the impact of the reduction in Medicare and Medicaid payments to hospitals, pharmaceutical companies and other customers, which could reduce demand for our products and increase downward pricing pressure; adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current global economic conditions on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; competitive factors; pricing and market share pressures; difficulties inherent in product development and delays in product introductions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; new or changing laws impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform, including changes in government pricing and reimbursement policies or other cost containment reforms; the effects of potential pandemic diseases; our ability to successfully integrate any businesses we acquire; and issuance of new or revised accounting standards, as well as other factors discussed in BD's filings with the Securities and Exchange Commission. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.
Colleen T. White, Corporate Communications – 201-847-5369
Monique N. Dolecki, Investor Relations – 201-847-5453
SOURCE BD (Becton, Dickinson and Company)
Released April 10, 2012