Medical technology giant BD said Thursday it will spin off its Diabetes Care business as an independent, publicly traded company, as it focuses on its Medical, Life Sciences and Interventional categories.
The Franklin Lakes-based business, also known as Becton, Dickinson & Co., said the new company — yet to be named — would create long-term value for shareholders and optimize its product portfolio to better meet customer and patient needs.
“The decision to spin off our Diabetes Care business is part of our active portfolio management and consistent with our BD 2025 strategy to ‘Grow, Simplify and Empower,’” Chairman, CEO and President Tom Polen said in a prepared statement. “The spinoff will allow BD to strengthen its growth profile, enables a greater investment focus on our other core businesses and high-growth opportunities, and makes a greater impact for our customers and patients.”
BD said the Diabetes Care business generated revenue of nearly $1.1 billion in fiscal 2020, with 48% of those revenues generated outside the U.S. It is currently part of BD’s Medical business.
The new company, which would have a strong insulin delivery device line, is expected to have offices in New Jersey and Massachusetts, along with manufacturing sites in the U.S., Ireland and China. Devdatt “Dev” Kurdikar, the current worldwide president of BD Diabetes Care, will become CEO of the new company.
“I am honored to be selected to lead ‘NewCo’ and excited by the opportunities ahead to create additional value for our patients, customers and BD shareholders, as well as new opportunities for our passionate associates,” Kurdikar said in a statement.
The spinoff is expected to be accomplished through a distribution of stock to BD shareholders, and would be completed in the first half of calendar 2022, subject to customary approvals and conditions.
BD’s advisers on the plan include Perella Weinberg Partners LP; Morgan Stanley & Co. LLC; Wachtell, Lipton, Rosen & Katz; Skadden, Arps, Slate, Meagher & Flom LLP; Baker McKenzie; and PricewaterhouseCoopers.