The cash and stock deal values Bard (NYSE:BCR) at $317 per share, 25% above Friday's close. Bard owners will receive about $222.93 per share in cash and 0.5077 shares of Becton Dickinson (NYSE:BDX) for each share of Bard they hold.
The companies are expecting $300M of annual run-rate synergies by 2020, and revenue synergies by 2019. The deal is also anticipated to improve gross margins by about 300 basis points beginning in fiscal 2018, and increase the trajectory of EPS growth to the mid-teens.
The deal is hoped to close in fall 2017.
A conference call is set for 8 ET tomorrow morning.