After 120 years, BD (Becton, Dickinson and Company) is selling off its surgical instrumentation platform to Irish equipment manufacturer STERIS for $540 million.

Part of the BD surgery business within the BD interventional segment, the platform, which makes $170 million in annual revenue and has 20,000 SKUs in its portfolio, includes V. Mueller, Snowden-Pencer and Genesis branded solutions, and three manufacturing facilities in St. Louis, Cleveland, and Tuttlingen, Germany.

The sale is in line with BD’s 2025 strategy, which is focused on simplifying its product portfolio and manufacturing network for revenue growth and margin expansion.

"This transaction further advances the BD Interventional segment's focus on high-growth end markets,” said Rick Byrd, president of the Interventional segment at BD, in a statement.

Among the types of solutions that STERIS will acquire are BD’s surgical and laparoscopic instruments, and sterilization containers. It expects the deal will gain an advantage from a tax benefit related to tax-deductible good will, with a present value of approximately $60 million.

“In particular, the focus on the operating room and sterile processing department fits perfectly with our healthcare customers,” said Dan Carestio, president and chief executive Officer of STERIS, in a statement.

STERIS supplies sterilization and surgical solutions to U.S. healthcare providers, pharmaceutical and medical device companies, and dentists, and has a global sales revenue of $5 billion.

Approximately 360 employees will be transferred there from BD following the transaction’s completion.

The sale is scheduled to go through sometime within BD’s fiscal year 2023, which ends on September 30. Payment will be made through a combination of debt and cash on hand.

It is subject to customary closing conditions and FTC regulatory approval.

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