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Tyco to acquire Bard
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May 30, 2001: 7:28 a.m. ET
Conglomerate to pay $3.2B in stock for N.J.-based medical device maker
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NEW YORK (CNNfn) - Diversified manufacturer Tyco International Inc. agreed Wednesday to acquire medical equipment maker C.R. Bard Inc. for $3.2 billion in stock.
Under the deal, which includes the assumption of debt, Tyco will offer $60 in stock for each share of Bard (BCR: Research, Estimates) based on Tyco's Tuesday closing price of $57 a share. That would be a 30 percent premium to Bard's Tuesday closing price of $46.
The companies said the agreement was subject to a $50 a share collar on Tyco's stock. Tyco said the deal was expected to immediately add to its earnings and cash flow.
The acquisition would give Tyco (TYC: Research, Estimates), based in Pembroke, Bermuda, a stronger foothold in the worldwide medical devices market. Murray Hill, N.J.-based Bard makes products for hernia repair, prostate cancer treatment and heart disease.
"Bard provides an excellent strategic fit with Tyco Healthcare, significantly enhancing our worldwide medical devices business," Tyco CEO Dennis Kozlowski said. "
Tyco said it expects significant cost savings in administrative areas as the companies are combined, as well as more efficient manufacturing, distribution and purchasing.
The transaction, which will be accounted for as a purchase and is meant to be tax-free to Bard shareholders, has been approved by both company's boards of directors. The deal needs approval from shareholders and regulators. 
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