Bard acquires full ownership of Kobayashi joint-venture Medicon

C.R. Bard (NYSE:BCR) said today it agreed to fully acquire ownership of Osaka, Japan-based Medicon from its joint-venture partner Kobayashi Pharmaceutical Co.

The 2 companies have operated Medicon, which produces medical equipment and devices in the fields of urology and gastrointestinal medicine, since 1972.

“As the growth opportunities in Japan evolve, we believe it is time to enhance our presence in the third largest healthcare market in the world. We want to thank our partners at Kobayashi for the more than 40 years of cooperation in building this business together, and we look forward to welcoming the Medicon team as full members of the Bard family,” Bard CEO Timothy Ring said in prepared remarks.

Bard said it expects the purchase to add $40 million to 2016 net sales for the company and for the transaction to be neutral for adjusted earnings-per-share outlooks for the 4th quarter 2015 and the full year 2016, but the impact of foreign exchange will reduce earnings per share by approximately 5¢ for 4th quarter 2015 and 20¢ for fiscal year 2016.

Upon closing, Bard will pay $25 million (¥3 billion) to Kobayashi for Medicon, and provide annual payments each year through 2024, providing a total of $93.2 million (¥11.2 billion) for the acquisition.

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