11.18.13
San Diego, Calif.-based CareFusion Corporation has signed a deal to buy the Vital Signs division of GE Healthcare for $500 million. The division, which makes single-patient-use respiratory care, anesthesiology, temperature management and patient monitoring products, has an annual revenue of approximately $250 million.
The acquisition will significantly expand CareFusion’s specialty disposables business by adding global scale and new products for anesthesiology, boosting the company’s position in the more than $3 billion market for respiratory and anesthesia products.
“The acquisition of Vital Signs is well-aligned to our long-term growth strategy, helping us create scale in our procedural solutions call points and increase our presence outside of the United States,” said Kieran T. Gallahue, chairman and CEO of CareFusion. “Together, CareFusion and Vital Signs have the research & development] manufacturing and go-to-market resources to drive innovation, invest for growth and better support customers in major geographic markets.”
“We are confident this transaction will provide Vital Signs new capabilities to maximize its opportunities in the medical consumables space and enable GE Healthcare’s Life Care Solutions segment to remain focused on its core strengths as a provider of medical device solutions,” said Tom Gentile, president and CEO of GE Healthcare’s Healthcare Systems division. “We believe CareFusion is equipped to unlock the growth potential of Vital Signs with a solid focus and strategy around medical consumables.”
CareFusion expects to complete the acquisition for the Vital Signs business in the United States, China and certain other countries by Dec. 31, and to finalize the remainder of the transaction during its third quarter, ending March 31, 2014, subject to regulatory review and customary closing conditions.
CareFusion focuses on two areas: reducing medication errors and prevention of health care-associated infections.
The acquisition will significantly expand CareFusion’s specialty disposables business by adding global scale and new products for anesthesiology, boosting the company’s position in the more than $3 billion market for respiratory and anesthesia products.
“The acquisition of Vital Signs is well-aligned to our long-term growth strategy, helping us create scale in our procedural solutions call points and increase our presence outside of the United States,” said Kieran T. Gallahue, chairman and CEO of CareFusion. “Together, CareFusion and Vital Signs have the research & development] manufacturing and go-to-market resources to drive innovation, invest for growth and better support customers in major geographic markets.”
“We are confident this transaction will provide Vital Signs new capabilities to maximize its opportunities in the medical consumables space and enable GE Healthcare’s Life Care Solutions segment to remain focused on its core strengths as a provider of medical device solutions,” said Tom Gentile, president and CEO of GE Healthcare’s Healthcare Systems division. “We believe CareFusion is equipped to unlock the growth potential of Vital Signs with a solid focus and strategy around medical consumables.”
CareFusion expects to complete the acquisition for the Vital Signs business in the United States, China and certain other countries by Dec. 31, and to finalize the remainder of the transaction during its third quarter, ending March 31, 2014, subject to regulatory review and customary closing conditions.
CareFusion focuses on two areas: reducing medication errors and prevention of health care-associated infections.