In an article published on the wall Street Journal, CareFusion Corp would be acquiring a unit of General Electric's (GE) healthcare division in a deal worth USD500 million.
CareFusion medical technology corporation that serves the healthcare industry worldwide. With its headquarters in San Diego, California, the company specializes in prevention of infections associated in healthcare and the reduction of medication errors. It is a publicly-traded company using the ticker name "CFN" on the New York Stock Exchange.
The terms of the deal would have CareFusion purchasing Vital Signs from GE Healthcare. GE Healthcare is a business of General Electric focused on the business of providing medical services and technology. Vital Signs, meanwhile, is a manufacturer of medicine for anesthesiology and respiratory care.
CareFusion's acquisition, it said, was strategic in nature as it intended to expand its business in the anesthesiology and respiratory market segment. It also added that part of the attraction of Vital Signs was the division's capability to generate USD250 million in yearly revenue. The medical equipment company also expected the acquisition of Vital Signs will significantly improve its product sales in international markets and be able to save USD10 million to USD15 million annually on a pretax basis by the fiscal year 2017 from the synergies of the division to the company. CareFusion also projected that the Vital Signs acquisition will increase the company's adjusted diluted earnings by USD0.05 to USD0.08 in the next fiscal year.
Additional terms of the acquisition deal would see to it that through Vital Signs, CareFusion would be able to develop new anesthesiology products in its portfolio and globally scale its anesthesiology and respiratory business.
The acquisition of Vital Signs in China, US and other countries by CareFusion was expected to be finalized by December 31, CareFusion said. The company also noted that the remaining details of the acquisition had a targeted completion date during the third quarter of the company ending March 31 next year.
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