Mergers & Acquisitions for the Week of June 3, 2024

A roundup of notable M&A deals involving Southern California companies

Irvine-based Edwards Lifesciences Corp. entered into an agreement to sell its Critical Care Product Group to Becton, Dickinson and Co. for $4.2 billion on June 3. The all-cash transaction is expected to be funded with approximately $1 billion in cash and $3.2 billion in new debt. Upon closing, Critical Care will operate as a separate business unit within the Franklin Lakes, N.J.-based company’s medical segment, and it will maintain its presence in Irvine. Katie Szyman, who has served as corporate vice president of Critical Care since 2015, will lead the new business unit. Critical Care has approximately 4,500 employees with most based in Irvine. In 2023, the business generated more than $900 million in revenue.

“Critical Care expands BD’s portfolio of smart connected care solutions with its growing set of leading monitoring technologies, advanced AI-enabled clinical decision tools and robust innovation pipeline that complement BD’s existing technologies serving operating rooms and intensive care units,” said Tom Polen, chairman, chief executive and president of BD, in a statement.

The transaction is subject to customary regulatory reviews, the receipt of required antitrust and foreign investment approvals and closing conditions. It is expected to close before the end of 2024. Perella Weinberg Partners and Citi acted as financial advisers; Ropes & Gray, LLP acted as legal counsel to Becton, Dickinson and Co. Goldman Sachs & Co. LLC; Morgan Stanley & Co. LLC acted as financial advisors; and Skadden Arps acted as legal counsel to Edwards.

San Diego

Los Angeles-based Decron Properties has acquired the Mira Mesa Market West Shopping Center from Stockbridge Capital Group for $99 million. The 238,747-square-foot shopping center in Mira Mesa was fully leased and is anchored by Home Depot, Smart & Final and CVS. It was built in 2000 and sits on 20 acres. The acquisition included the assumption of the existing financing with New York Life Insurance Company, which allowed Decron to take on the remaining loan term at its below-market fixed interest rate of 3.5%.

“We saw this as an opportunity to add a marquee retail asset to our growing San Diego portfolio,” said Decron CEO David Nagel in a statement. “Only a few years ago, it was assumed that brick-and-mortar retail would be taken over by e-commerce. While there is still strong demand for online shopping, we are seeing a rise in people still wanting the in-store experience,” Nagel said.

Mira Mesa Market West is the second real estate acquisition for Decron in the San Diego market in the last six months. In December, it acquired Margo at The Society, a 240-unit apartment community for $125.5 million.