BD (Becton, Dickinson, and Company) has signed a definitive agreement to sell its Surgical Instrumentation platform to STERIS for $540 million.

The divestiture will include V. Mueller, Snowden-Pencer, and Genesis branded products and three manufacturing facilities located in St. Louis, Mo.; Cleveland, Ohio; and Tuttlingen, Germany. Approximately 360 employees who support this platform will transfer to STERIS upon the completion of the transaction. The divestiture is expected to close within BD’s fiscal year 2023, ending Sept. 30, pending satisfaction of customary closing conditions and U.S. Federal Trade Commission (FTC) regulatory approval. The Surgical Instrumentation platform is reported as part of the BD Surgery business within the BD Interventional segment.

Divesting the platform advances the “Simplify” pillar of the BD 2025 strategy and is an important step in simplifying BD’s product portfolio and manufacturing network, according to the company. The platform has three dedicated manufacturing sites and about 20,000 SKUs in its portfolio. This strong value-creating transaction supports the achievement of BD’s 2025 financial goals, including revenue growth and margin expansion. Cash proceeds will be deployed consistent with BD’s capital allocation priorities to enable a continued durable growth profile.

STERIS is global provider of products and services that support patient care with an emphasis on infection prevention. With global sales of $5 billion, STERIS has more than 17,000 dedicated associates around the world working together to supply a broad array of infection prevention and other procedural products and services, focused primarily on healthcare, pharmaceutical, medical device, and dental customers. BD’s surgical instrumentation platform is complementary to STERIS’s Healthcare segment and will allow them to better meet hospitals’ and surgery centers’ product and service needs.

“The Surgical Instrumentation platform has a 120-year legacy of providing reliable and trusted high-quality products, and STERIS is well positioned to maximize the value of this extensive portfolio and is fortunate to be adding such a dedicated and talented team to its organization,” says Rick Byrd, president of the Interventional segment at BD. “This transaction further advances the BD Interventional segment’s focus on high-growth end markets. We look forward to continuing to address unmet needs in health care through a highly differentiated and innovative set of solutions and products.”