Quick Value #298 - Becton Dickinson (BDX)
Upcoming RMT transaction set for 1Q26 closing; a look at stub BDX
Today’s post:
Spin/merge with Waters (WAT) set to close in 1Q26
Exit multiple for SpinCo >20x in cash & stock deal
Stub BDX attractively priced today
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Recent write-ups include:
12/22/25 — Initial look at Versant spin-off
12/01/25 — Gibraltar beaten down on acquisition announcement ($)
11/27/25 — New Aptiv (RemainCo) and Cyprium (SpinCo)
11/17/25 — Turnaround + management change at SWK ($)
11/10/25 — Dole fully deleveraged, cheap, kickstarting buybacks
10/27/25 — ONEOK is a cheap midstream energy co
10/20/25 — Net-net in oilfield services ($)
10/13/25 — Solstice spin off from Honeywell
10/06/25 — Divestitures and delevering at Leggett & Platt ($)
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Quick Value
Becton Dickinson (BDX)
Ticker: BDX
Price: $196
Shares: 285.5m
Market cap: $56bn
Valuation: 11.9x P/E (stub)
Theme: spin-off / stubBackground
In July 2025, BDX announced it would sell its biosciences & diagnostics solutions businesses in a Reverse Morris Trust transaction to Waters (WAT) in exchange for cash plus stock in the combined company.
At the time of announcement, Waters was trading at $350 per share which valued the transaction at $17.5bn ($4bn cash + $13.5bn stock). Since then, WAT has appreciated while stub BDX (“New BD”) flatlined, this increases the value of the transaction to ~$18.9bn ($4bn cash + $14.9bn stock).
BDX is reaping a large sum for these businesses at >20x EBITDA and more value is accruing to the stub:
