Edwards Lifesciences
(NYSE: EW)
announced that it completed the sale of its Critical Care business to BD
(NYSE: BDX)
for $4.2 billion.
Irvine, California-based Edwards announced at the end of last year that it planned to spin off the Critical Care business. However, instead of a spin, BD announced in June that it struck an all-cash deal to acquire the patient monitoring business segment.
Related: Edwards Lifesciences starts global layoffs after closing Critical Care deal
Critical Care will operate in Irvine as a separate business unit within the BD Medical segment. Katie Szyman, the corporate VP of Critical Care at Edwards, continues to lead the unit. Edwards said in a news release that it plans to use the net proceeds to fund strategic initiatives. Those include previously announced acquisitions and share repurchases.
The company has been on an M&A tear of late, as it announced a deal to acquire mitral valve maker Innovalve Bio Medical in July. Ten days later, it announced two more acquisitions — JenaValve and Endotronix — worth a combined $1.2 billion. Last month, the company agreed to buy valve maker JC Medical as well.
Edwards also announced that its board authorized an additional $1.5 billion for share repurchase. That adds to a recently agreed $500 million accelerated share repurchase. The company said it has $1.4 billion in remaining authorization for additional repurchases.
“Critical Care has made significant contributions to our company and has a long history of innovation. We are grateful to the team for their commitment to improving patient outcomes globally,” said Bernard Zovighian, Edwards CEO. “The sale of Critical Care reflects our sharpened focus as a structural heart innovator. Within our existing business, TAVR has significant opportunities to grow and improve how AS patients are treated, TMTT’s contribution to Edwards’ growth is just getting started, and we continue to expand our surgical leadership. In addition, our focus will support patients in need of therapies to treat aortic regurgitation and non-valvular structural heart disease through implantable technologies.”
