BD's $18.9 Billion Spin-Off Deal Fuels Bullish Outlook for 'New BD'
Investor attention is sharpening on Becton, Dickinson and Company (NYSE: BDX) as a major corporate restructuring moves closer to completion. The medical technology giant's plan to spin off and merge its Biosciences & Diagnostic Solutions unit with Waters Corporation, announced in July 2025, is now valued at roughly $18.9 billion—a notable increase from its initial $17.5 billion valuation, driven by Waters' rising stock price.
This Reverse Morris Trust (RMT) transaction, expected to finalize in the first quarter of 2026, will leave BDX with a substantial cash infusion of $4 billion and a retained equity stake in the new, higher-multiple life sciences entity. The remaining company, often called "New BD," will focus squarely on its core medical technology and device franchises. With BDX's share price largely stagnant since the deal's announcement, analysts suggest the market has yet to price in the full value of the incoming proceeds and the strategic clarity the spin-off provides.
"The math here is compelling," said Michael Thorne, a portfolio manager at Veritas Capital Advisors. "You have a deal whose value has appreciated by over $1.4 billion on paper, yet the stub equity—the 'New BD'—trades at a forward P/E around 12x. That disconnect creates a clear, time-bound catalyst. The cash gives them immense flexibility for debt paydown, buybacks, or strategic M&A to bolster their medtech footprint."
Becton Dickinson, a global leader in medical supplies, devices, and diagnostic products, currently holds a market capitalization of approximately $56 billion. Proponents of the bullish thesis argue that the pending transaction effectively crystallizes value for a non-core division at a premium multiple (over 20x EBITDA), while simplifying the parent company's story and unlocking balance sheet potential.
Investor Perspectives
Dr. Anya Sharma, Healthcare Analyst at Glenview Capital: "This is a textbook value-unlocking event. Management is streamlining the portfolio, monetizing a strong asset at a great multiple, and sharpening strategic focus. The cash proceeds alone could reduce leverage significantly, making the remaining business more resilient and potentially more shareholder-friendly."
Robert "Buck" Fielding, Independent Investor and former BDX shareholder: "It's financial engineering dressed up as strategy. They're chopping up the company because they can't grow the top line organically. That $4 billion cash will probably just get frittered away on overpriced acquisitions or buybacks at inflated prices. The 'stub' is cheap for a reason—the growth profile is mediocre."
Linda Chen, Managing Partner of Life Sciences Value Fund: "The market often misprices complexity. The RMT structure is complicated, so many funds just avoid it until it's done. That creates an opportunity for those who do the work. As we approach the close in 2026, that uncertainty premium should compress, and the fundamentals of the streamlined BD—strong cash flows, dominant market positions—should get more recognition."
David Reeves, Retail Investor and Nurse Practitioner: "As someone who uses their products daily, BD's quality is undeniable. But as an investor, I've been frustrated by the stock's performance. This spin-off finally feels like a decisive move. A focused medtech company with less debt and a clear mission? That's the BD I want to own. The current price feels like a last chance to get in before the story simplifies."
The transaction highlights a continuing trend of large healthcare conglomerates seeking to unlock value through separations, allowing distinct business units with different growth profiles and capital needs to be valued independently by the market.