J&J explores sale of LifeScan
Johnson & Johnson on Friday announced the potential sale of its LifeScan division, a leader in blood glucose monitoring products, to Platinum Equity. The private investment firm made a binding offer of approximately $2.1 billion for the diabetes company.
LifeScan posted 2017 net revenue of approximately $1.5 billion.
“LifeScan’s OneTouch blood glucose monitoring products play an important role in the lives of millions of patients living with diabetes, and following a thorough review of all strategic options, we feel confident that the business would have a promising future with Platinum Equity,” Ashley McEvoy, Company Group Chairman, Consumer Medical Devices, Johnson & Johnson, said. “This initiative is part of our ongoing, disciplined approach to portfolio management to focus on our most promising opportunities to help patients and drive growth.”
The acceptance period for the offer will end on June 15, 2018, unless extended, and during that time consultations with relevant works councils are planned. If the offer is accepted, the transaction would be expected to close by the end of 2018, subject to the satisfaction of customary closing conditions. This transaction was contemplated in Johnson & Johnson’s guidance provided on January 23, 2018.
The Johnson & Johnson Family of Companies will continue to serve those impacted by diabetes through products, services and solutions from its Medical Device, Pharmaceuticals and Consumer businesses, the pharmceutical conglomerate, which operates out of New Brunswick, N.J., noted. These include important leadership and innovation in areas such as bariatric surgery and through medicines such as Invokana (canagliflozin) and Invokamet (canagliflozin/metformin HCl).
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