Edwards sells critical care unit for $4.2 billion

Irvine-based Edwards Lifesciences Corp. has agreed to sell its critical care unit for $4.2 billion in cash to Becton Dickinson & Co.

The unit has about 4,500 employees, with most based in Irvine, and generated more than $900 million in revenue last year, New Jersey-based Becton said in a statement Monday, June 3. Becton added that Critical Care will operate as a separate business unit and “will maintain its presence in Irvine.”

The transaction is expected to close before the end of the calendar year. Edwards previously planned to spin off the unit as a separate company.

The Critical Care unit’s products include the Swan Ganz pulmonary artery catheter, minimally invasive sensors, tissue oximetry sensors and monitors. Katie Szyman, who has served as corporate vice president of critical care at Edwards since 2015, will lead the business within Becton.

The purchase will immediately add to Becton’s revenue growth, profitability and adjusted earnings per share, the company said. It plans to fund the deal with about $1 billion of cash and $3.2 billion of new debt.

CalAmp, Irvine software firm, files bankruptcy

Irvine-based CalAmp Corp., which develops software designed to track vehicles and improve company logistics, has filed bankruptcy to complete a debt-cutting deal that hands control of the business to lender Lynrock Lake Master Fund LP.

Publicly traded CalAmp filed Chapter 11 on Monday in Delaware to execute a restructuring deal where Lynrock has agreed to swap $229 million in secured notes for 100% of the equity in the reorganized business. Other CalAmp creditors would be fully repaid in cash, the company said in court papers.

CalAmp estimated its assets are worth about $281.2 million and that its liabilities are worth about $355.4 million. Shares of the company dropped as much as 61% on Monday and declined 81% so far this year.

Before filing bankruptcy, CalAmp said its financial performance had been deteriorating and that it faced “imminent defaults” under its lending documents. The company said it also worried about its stock potentially being delisted from Nasdaq, which would have likely triggered a default, according to court documents.

Toyota apologizes for cheating on vehicle testing

Toyota Chairman Akio Toyoda apologized Monday for massive cheating on certification tests for seven vehicle models as the automaker suspended production of three of them.

The wide-ranging fraudulent testing at Japan’s top automaker involved the use of inadequate or outdated data in collision tests, and incorrect testing of airbag inflation and rear-seat damage in crashes. Engine power tests were also found to have been falsified.

Toyota Motor Corp., based in Toyota city, central Japan, suspended production in the country of the Corolla Fielder, Corolla Axio and Yaris Cross. The deceptive tests were also found on discontinued models.

The company said the wrongdoing does not affect the safety of the vehicles already on roads, which include the Corolla subcompact and Lexus luxury vehicles.

“We sincerely apologize,” Toyoda told reporters, bowing deeply and holding the position for several seconds, as is customary in Japan at news conferences where companies apologize for misbehavior.

A Japanese government investigation into Toyota began in January. The issue does not affect Toyota’s overseas production.

Toyota sells more than 10 million vehicles around the world.

Compiled from Associated Press and staff reports.