May 6, 2021 – BD (Becton, Dickinson and Company) (Franklin Lakes, NJ) announced it plans to spin off the company’s Diabetes Care business as an independent, publicly traded company (“NewCo”).
The transaction is expected to create two, independent companies with:
- Enhanced focus on strategic, operational and financial drivers to accelerate revenue growth
- Optimized product portfolios to better meet customer and patient needs
- More efficient resource and capital allocation to pursue each company’s strategic goals
Devdatt Kurdikar, who joined BD in February 2021 and is currently worldwide president of BD Diabetes Care, will be CEO of NewCo. Most recently, Kurdikar served as CEO and president for Cardiac Science, a global manufacturer of automated external defibrillators (AEDs) until the sale of the company to ZOLL Medical Corporation, an Asahi Kasei Group Company.
Jacob Elguicze, former treasurer and head of investor relations for Teleflex, has joined BD in May 2021 and will be CFO of NewCo.
BD says that NewCo’s revenue and manufacturing footprint are geographically diverse. In fiscal 2020, the Diabetes Care business generated revenues of nearly $1.1 billion, with 48% of revenues generated outside of the United States, including 17% of revenues from emerging markets. NewCo will have manufacturing sites in the United States, Ireland, and China, and is expected to have office locations in New Jersey and Massachusetts.
Following the spinoff, BD will maintain category leadership positions across its portfolio in the BD Medical, BD Life Sciences and BD Interventional segments.
BD Medical, which today includes the Diabetes Care business, will continue to be the global leader in end-to-end medication management solutions with its BD Alaris brand of infusion pumps, BD Pyxis brand of medication and supply dispensing solutions, BD HealthSight data and analytics platforms and its breadth of medication delivery devices. It will also continue to be the global leader in prefilled injectable delivery devices through its innovative pre-fillable syringes, self-injection systems, safety systems and needle technologies.
BD expects the spinoff to be accomplished through a distribution of stock in NewCo to BD shareholders. The transaction is also expected to be completed in the first half of calendar year 2022.