A multinational company with revenue topping $20 billion is acquiring a Durham-based firm focused on automation solutions for the pharmacy industry.
Becton, Dickinson and Co. (NYSE: BDX), a medical technology company with operations in North Carolina, announced June 6 that it has entered into an agreement to purchase Parata Systems from Frazier Healthcare Partners. The all-cash transaction is worth about $1.5 billion and expected to close in the first half of Becton Dickinson's 2023 fiscal year.
Becton Dickinson, headquartered in New Jersey and No. 173 on the Fortune 500, said the deal will give the company access to a $600 million pharmacy automation market that's estimated to reach $1.5 billion over the next decade.
"Parata expands BD's solutions to a new area of the high-growth pharmacy automation space and is a prime example of BD executing our disciplined M&A strategy," said Tom Polen, chairman, CEO and president of Becton Dickinson. "Parata has a highly attractive financial profile and compelling value proposition that meets all of our rigorous investment criteria on growth, profitability and returns."
Parata provides pharmacy technology solutions to reduce costs, enhance patient safety and improve the patient experience. Its pharmacy automation portfolio includes medication adherence packaging, high-speed robotic dispensing technologies and pharmacy workflow solutions.
During the 12-month period that ended March 31, Parata generated about $220 million in revenue, according to the company. Founded in 2001, it is led by CEO Rob Kill.
"We are very proud of the company the team has built at Parata over the past 21 years and feel BD is a great home for our company, innovative solutions and technology, and Parata's team members," Kill said in a statement. "The combination with BD will further advance our purpose of powering pharmacies to help people lead healthier lives."
The deal is expected to help Becton Dickinson exceed its 2025 sales growth and margin targets.
Parata was acquired by a portfolio company of Frazier Healthcare Partners in 2018. It has about 400 employees, including an estimated 200 in the Triangle region.
BD has a diagnostics manufacturing facility that makes women's health products, specifically HPV screening tests, in Mebane. Its global research and development headquarters is at Research Triangle Park between Durham and Raleigh, and it has a distribution facility in Four Oaks southeast of Raleigh, according to spokesman Troy Kirkpatrick. About 750 people in all work at the central North Carolina facilities; Kirkpatrick did not have a breakdown by site.
Triangle Business Journal Digital Editor David Purtell contributed to this article.
