Becton Dickinson in Talks with Thermo Fisher, Danaher for Life Sciences Unit Sale

The unit, which includes biosciences and diagnostic solutions, is estimated to be worth as much as $21.5 billion, according to analysts at Bank of America.

US medical device company Becton Dickinson (BD) is in discussions with Thermo Fisher Scientific and Danaher regarding a potential sale of its life sciences unit, according to a report by the Financial Times. 

The unit, which includes biosciences and diagnostic solutions, is estimated to be worth as much as $21.5 billion, according to analysts at Bank of America.

In February, BD announced plans to separate the unit after the Financial Times reported that activist investor Starboard Value had taken a stake in the company and was advocating for its divestiture. The company’s shares have declined by approximately 7.5% since the announcement.

Exploring Alternative Divestiture Strategies

Alongside talks with Thermo Fisher and Danaher, BD is also evaluating a tax-free Reverse Morris Trust deal with smaller diagnostics firms, including Waters Corp, Qiagen, and Revvity, as per sources cited in the report.

BD’s biosciences and diagnostic solutions unit develops diagnostic products for detecting infectious diseases and cancers. The potential sale aligns with BD’s broader strategy to streamline its portfolio and focus on core medical device operations.

As of now, BD, Thermo Fisher, Danaher, Waters Corp, Qiagen, and Revvity have not issued statements regarding the ongoing discussions.