Becton Dickinson looks to divest life sciences unit at $30 billion valuation, source says

Corrects sales of life sciences unit in paragraph 12 to $5.19 billion from $5.12 billion

Feb 3 (Reuters) - U.S. medical device maker Becton Dickinson BDX.N is considering a potential separation of its life sciences unit at a valuation of about $30 billion, a person familiar with the matter said on Monday.

The company could announce the separation of the business, which consists of biosciences and diagnostic solutions, at the time of its earnings later this week, the source said.

Becton is scheduled to report results on Thursday.

The Financial Times had earlier reported that activist investor Starboard Value had taken a stake in Becton and was pushing the company to sell its life sciences unit.

The life sciences unit makes diagnostic products such as those used to detect infectious diseases and cancers, as well as substances utilized in research.

The size of Starboard's stake is unclear, the FT report said, adding that the hedge fund met with the company's management and sent a letter to the board regarding the matter.

"BD welcomes input and feedback from all of our shareholders," a company spokesperson said but declined to comment on the report.

Starboard Value did not immediately respond to a Reuters request for comment.

Last year, Becton bought Edwards Lifesciences' EW.N critical care unit, which sells advanced blood and heart monitoring systems used in surgical and intensive care settings, for $4.2 billion.

The company primarily sells drug delivery devices, such as catheters, infusion pumps and prefillable syringes, under its medical unit.

Becton's shares had gained about 4% in the 12 months ended Jan. 31, compared with a near 25% rise in the S&P 500.

The life sciences unit generated sales of $5.19 billion in fiscal year 2024, accounting for over a quarter of the company's total revenue.

Becton had divested its diabetes care business in 2022 into a separate company, Embecta Corp EMBC.O, and sold its surgical instrumentation platform to Steris STE.N the following year.