CareFusion plans to acquire GE Healthcare's Vital Signs

Medical technology company CareFusion Corp., San Diego, plans to acquire GE Healthcare's Vital Signs division for $500 million.

Vital Signs manufactures single-patient-use products for respiratory care and anesthesiology and markets single-use products for temperature management and patient monitoring.

The deal would give CareFusion a leading piece of the $3 billion market for the respiratory and anesthesiology products. And with approximately one-third of Totowa, N.J.-based Vital Signs' $250 million revenue coming from customers outside the U.S., the acquisition should mean greater prominence internationally for CareFusion.

“The acquisition of Vital Signs is well-aligned to our long-term growth strategy, helping us create scale in our procedural solutions call points and increase our presence outside of the United States,” CareFusion Chairman and CEO Kieran Gallahue said in a news release. “Together, CareFusion and Vital Signs have the R&D, manufacturing and go-to-market resources to drive innovation, invest for growth and better support customers in major geographic markets.”

Pending regulatory approval, CareFusion expects to close the acquisition in the U.S., China and certain other countries by the end of this year and to finalize the rest of the transaction by March 31, 2014. It would be CareFusion's eighth acquisition since 2010.

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