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C.R. Bard Gains Full Ownership of Medicon, Expands in Japan

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Shares of C.R. Bard Inc.BCR climbed 2.1% to $190.22, following the signing of a definitive agreement to acquire Kobayashi Pharmaceutical's 50% stake in Medicon. Medicon is a joint venture formed by Bard and Kobayashi Pharmaceutical way back in 1972 to import and commercialize Bard's medical technology products in Japan.

The deal is valued at about $93.3 million and is expected to close by early Nov 2015. Post completion, Medicon will be a wholly-owned subsidiary of Bard. The company will make annual payments to Kobayashi through 2025.

Bard expects the acquisition to add $40 million to net sales in 2016. Excluding the impact of foreign exchange, the company expects the acquisition to have no effect on adjusted earnings in the fourth quarter of 2015 and full-year 2016. Including foreign exchange impact, the acquisition is expected to be dilutive to adjusted earnings by 5 cents a share in the fourth quarter of 2015 and by 20 cents in full-year 2016. However, management is optimistic that the transaction will prove to be accretive starting 2017.

Bard and Kobayashi have been jointly operating Medicon in Japan for over 40 years. However, with evolving growth opportunities for peripheral vascular devices in Japan, management at C.R. Bard deems this to be the right time for the venture. We feel that this acquisition will certainly help the company expand its presence in Japan, which in turn, will propel growth.

Zacks Rank and Key Picks

Currently, Bard carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical sector are Masimo MASI , Thoratec THOR and NuVasive NUVA . All the stocks sport a Zacks Rank #1 (Strong Buy).

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BARD C R INC (BCR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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