Sources told Bloomberg that only three bidders remained for the Ortho Clinical Diagnostics business of Johnson & Johnson. Johnson & Johnson makes and sells healthcare products and gives related services for those in the pharmaceutical, consumer, medical devices and diagnostics markets.
People knowledgeable of the transaction said Johnson & Johnson had narrowed the list to a bid from Carlyle Group, the joint offer from Danaher Corp and Blackstone Group and the other joint bid from CVC Capital Partners and Leonard Green & Partners. The sources spoke on the condition of anonymity since the matter is confidential. There were at least five bidders who showed their interest for the business, the sources revealed. One person said Johnson & Johnson hoped to arrive at a deal before 2013 ends.
In January, Johnson & Johnson Chief Executive Officer Alex Gorsky said the company would be selling its diagnostic business because it was no longer a leader in that market segment. Moreover, the heathcare firm reportedly wanted to concentrate on molecular diagnostics. Johnson & Johnson's Ortho Clinical manufactures diagnostic equipment. It also offers tests for various medical conditions like fertility hormones and cholesterol. One of the people said the business could have a price tag of almost USD 4 billion.
Bain Capital Partners, which had initially shown its interest to acquire the unit, did not make it to the list, one of the sources said. The sources also said JPMorgan Chase & Co was hired by Johnson & Johnson to help it get a buyer for the diagnostic unit. An earlier report from Reuters said Johnson & Johnson was holding final discussions with the Danaher-Blackstone Group and Carlyle. Official confirmation is yet to be heard from all parties.
At the end of the recent New York trading, shares of Johnson & Johnson increased by less than 1% to USD 95.20. This year, the shares have posted a gain of 36%.
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