Bermuda-based Tyco International Ltd., a diversified manufacturing and service company, has signed a deal to buy a leading US multinational producer of healthcare products for more than $3 billion.

The deal with C. R. Bard, Inc., a leading multinational developer, manufacturer and marketer of health care products, was announced yesterday by both companies in a press release.

The companies said they had "entered into a definitive agreement, pursuant to which a subsidiary of Tyco will acquire C. R. Bard".

The transaction is valued at approximately $3.2 billion, including the assumption of net debt, based on Tyco's May 29, 2001 closing share price on the New York Stock Exchange of $57.

In the deal Bard shareholders will receive Tyco shares valued, just prior to the Bard shareholder vote, at $60.00 for each share of Bard, subject to an adjustment, were Tyco stock to trade below $50 during a measurement period.

Bard, which had full year 2000 revenues of $1.1 billion, is a leading medical devices manufacturer of products used for vascular, urological and oncological diagnosis and intervention, as well as surgical specialities.

Dennis Kozlowski, Tyco's chairman and chief executive officer said: "Bard provides an excellent strategic fit with Tyco Healthcare, significantly enhancing our world wide medical devices business."

Mr. Kozlowski added: "Bard's four flagship franchises offer major new growth opportunities, making us more competitive and enabling us to better serve our customers, by broadening our product offerings. Also, we will use our existing international infrastructure to expand the distribution of Bard's products overseas. Like our other acquisitions, Bard will generate long-term, sustainable revenue growth and operating efficiencies."

By becoming part of Tyco Healthcare, Bard joins a family world-class brands such as Kendall, US Surgical, Sherwood and Mallinckrodt.

Tyco Healthcare has a track record of successfully building leadership positions in the health care industry through organic growth as well as acquisitions.

Tyco said the acquisition will provide Tyco Healthcare with a robust new product pipeline, including new hernia repair, GERD treatment, prostate cancer and peripheral vascular disease products, as well as platforms for future acquisitions and distribution agreements.