Franklin Lakes-based BD on Friday said it completed its previously announced spinoff of Embecta Corp. — its former Diabetes Care business, which is now one of the largest pure-play diabetes management companies in the world.
Embecta and its employees will celebrate its launch by ringing the closing bell at the Nasdaq Stock Market.
“The completion of this spinoff is a significant achievement for both BD and Embecta,” said Tom Polen, chairman, CEO and president of BD. “While BD is proud of its heritage in the diabetes care category, we are just as excited to see our legacy advanced by Embecta as a newly independent, publicly traded corporation.”
As a standalone public company, Embecta will now have the strategic, operational and financial independence to optimize its product portfolio, and achieve more efficient resource and capital allocation to address the significant unmet need for chronic diabetes care. As an independent company, Embecta has an opportunity to serve the large and growing insulin delivery market, which Embecta estimates to be $6 billion to $8 billion per year.
Shareholders will receive one share of Embecta common stock for every five common shares of BD, also known as Becton, Dickinson and Co., that they held as of the close of business on March 22, the record date for the spinoff, with cash in lieu of any fractional shares.
“We are building on a nearly 100-year legacy as pioneers in diabetes care by becoming an independent public company,” said Devdatt “Dev” Kurdikar, CEO of Embecta. “As the largest producer of diabetes injection devices in the world, Embecta is an established leader with unmatched manufacturing expertise, global distribution and commercial capabilities in over 100 countries. We are now better positioned to drive shareholder value and accelerate growth by investing in both organic and inorganic innovation, which will help give people living with diabetes the knowledge and tools they need every day. We are thankful for our 2,000 employees, who are highly motivated and work tirelessly each day to improve the lives of people living with diabetes, and we are excited about the opportunities that lie ahead.”
Perella Weinberg Partners LP, Morgan Stanley & Co. LLC, Wachtell, Lipton, Rosen & Katz, Skadden, Arps, Slate, Meagher & Flom LLP, Baker McKenzie and PricewaterhouseCoopers are acting as advisers to BD in connection with the transaction.