Summary
Becton, Dickinson and Company (BD) announced on October 4, 2004, its decision to sell its Clontech operation, a unit within its BD Biosciences segment. This strategic move is driven by BD Biosciences' intent to concentrate its efforts on core areas such as cell analysis, discovery labware, and emerging platforms for imaging and in vitro drug metabolism/toxicity testing. The divestiture is anticipated to conclude in the second quarter of BD's fiscal year 2005, with Goldman Sachs & Company serving as the financial advisor for the transaction. As a consequence of this planned sale, BD expects to recognize a pre-tax loss of approximately $125 million ($115 million after-tax), equating to roughly $0.44 per share, in its fourth quarter of fiscal year 2004. This charge is primarily non-cash, stemming from the write-down of Clontech's assets, particularly intangibles, to their fair value, with minor cash costs of approximately $2 million. Investors should note that these estimates are subject to risks and uncertainties, and actual results could differ materially based on the successful completion of the divestiture and its transaction terms.
Key Highlights
- 1BD plans to sell its Clontech operation, a division of BD Biosciences.
- 2The divestiture aligns with BD Biosciences' strategy to focus on cell analysis, discovery labware, and new imaging/drug metabolism platforms.
- 3The sale is expected to be completed in the second quarter of fiscal year 2005.
- 4Goldman Sachs & Company has been appointed as the financial advisor for the sale.
- 5BD anticipates recording a pre-tax loss of approximately $125 million ($115 million after-tax, or $0.44 per share) in Q4 FY2004 related to the divestiture.
- 6The majority of the loss will be non-cash, related to asset write-downs, primarily intangible assets.
- 7Actual charges may vary from estimates due to risks and uncertainties associated with completing the transaction.