CareFusion cares about eliminating confusion and infection in hospital settings. It sells medical equipment -- infusion and respiratory ventilation systems -- and accompanying disposables for infection prevention. The company's Pyxis automated medication dispensing units cut down on clinician error when dealing with patients in critical care settings. Its Alaris infusion products include software to reduce IV medication errors. The company also makes AVEA respiratory ventilation devices, SensorMedics pulmonary care products, and V. Mueller surgical instruments. Other products and software help prevent the spread of hospital-acquired infections. Medical equipment maker Becton, Dickinson bought CareFusion in 2015.
Change in Company Type
After being acquired by Becton, Dickinson, the company terminated its listing on the New York Stock Exchange. The $12.2 billion acquisition broadens Becton, Dickinson's business as a provider of medical equipment to hospitals.
CareFusion products include the Alaris infusion pumps and IV sets, MaxPlus and MaxZero IV connectors and sets, ChloraPrep products, V. Mueller surgical instruments, and AirLife ventilation and respiratory products.
The company operates in more than 20 countries in North and South America, the Middle East, Europe, Africa, and the Asia/Pacific region. It sells its products in more than 120 countries.
Prior to the acquisition by Becton Dickinson, CareFusion enjoyed several years of revenue growth. This continued in fiscal 2014 (ended June) as CareFusion reported $3.8 billion in revenue, an 8% increase from the previous year's $3.6 billion. Specialty disposables drove a 19% revenue increase for the procedural solutions unit along with other acquisition-related increases. Medical systems reported 3% growth.
Net income also continued to rise, up 8%, from $385 million to $417 million, based on the strong revenue growth and the fact that CareFusion was no longer setting aside $41 million for a possible IRS settlement. Cash from operations grew 12%, from $614 million to $685 million, on the strength of revenue growth as well.
In early 2015 CareFusion was acquired by fellow medical equipment maker Becton, Dickinson. The move gives CareFusion access to Becton, Dickinson's established global distribution system. It also helps Becton, Dickinson reach its goal of becoming more customer-focused.
CareFusion's growth has been built upon new product introductions and enhancements, as well as acquisitions. In 2014 it launched more than a dozen new products, including Pyxis and ChloraPrep line extensions as well as new disposable infusion products.
At the same time, the company has tidied up its operations in recent years through cost-reduction and restructuring efforts, shedding a handful of businesses.
Mergers and Acquisitions
The company widened its presence in the respiratory care and anesthesiology markets in 2013 when it acquired the Vital Signs business of GE Healthcare for some $500 million. The purchase also expanded CareFusion's manufacturing and development operations in the disposable medical supply market (where it primarily operates as a distributor).
Also in 2013 the company acquired Spanish disposable infusion maker Grupo Sendal to increase its presence in the Western European market.
In 2015 the company acquired Surgical Site Solutions, expanding its surgical clipper portfolio by adding the ClipVac pre-surgical hair removal system.