Johnson & Johnson's Ortho Clinical Diagnostics unit had received numerous preliminary offers from some of the world's biggest private equity firms. The diagnostic unit of J&J manufactures screening equipment and laboratory blood testing machines. A deal could fetch around USD5 billion, said several people familiar with the matter last Monday.
Several private equity firms that offered proposals for J&J's unit included KKR, Blackstone, BC Partners and Bain Capital. This was according to sources who spoke in condition of anonymity as they were not authorized to discuss the details of the process publicly.
Johnson & Johnson did not respond to requests for comment regarding the report. While the mentioned private equity firms declined to give statements.
The unit for sale gained annual sales of around USD2 billion. J&J's Ortho Clinical Diagnostics units had been considered older and less profitable than that of modern molecular diagnostics.
J&J's divestment came after drug manufacturers had been shedding businesses and cutting costs. This was in response to overseas price controls and pressure on payments from insurers and the government.
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