FRANKLIN LAKES, New Jersey (AP) ― New Jersey medical equipment maker Becton Dickinson and Co. says it will pay $12.2 billion for rival Carefusion in a combination focused on medication systems for hospitals and pharmacies.

The companies announced Sunday that BD will pay $58 for each share of San Diego-based Carefusion. The deal, expected to close in the first half of 2015, will give BD investors a 92 percent stake in the new company.

The merger is the latest example of consolidation within the medical sector, where drug and device makers are turning to acquisitions to boost sales and cut costs. BD, based in Franklin Lakes, says the merger should result in $250 million in savings by 2018.

Both companies have focused recent development efforts on technology to reduce medication errors and other patient safety problems.