CareFusion to Acquire Vital Signs Division of GE Healthcare

CareFusion (San Diego, CA, USA), a leading global medical technology company, has signed a definitive agreement to acquire the Vital Signs division of GE Healthcare (Little Chalfont, United Kingdom) for USD 500 million.

The acquisition will significantly expand CareFusion's specialty disposables business by adding global scale and new products. With the addition of the Vital Signs portfolio, CareFusion will become a full-line provider of more than 20,000 single-use consumables for respiratory care and anesthesiology, including circuits for oxygen and anesthesia, humidification, masks, filters, pressure infusers, and temperature management, and patient monitoring consumables. It is expected the deal will establish CareFusion as a leader in the more than USD 3 billion market for respiratory and anesthesia consumables.

The complementary product lines and geographies will enable CareFusion to better serve customers globally. The acquisition will also accelerate the transformation of the CareFusion Specialty Disposables business from a distributor to a vertically integrated manufacturer. The deal will create opportunities to improve business results by increasing international product sales through Vital Signs' complementary infrastructure outside of the United States, and by leveraging CareFusion's operational infrastructure.

“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 Gallahue, chairman and CEO of CareFusion. “Together, CareFusion and Vital Signs have the R&D, 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 December 31, 2013, and to finalize the remainder of the transaction by March 31, 2014, subject to regulatory review and customary closing conditions. Upon completion of the transaction, Vital Signs will be CareFusion's eighth acquisition since 2010.

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