J&J completes $4 billion OCD sale
pharmafile | July 2, 2014 | News story | Sales and Marketing | J&J, JJ, Johnson and Johnson, Ortho-Clinical Diagnostics, carlyle, ocd
Johnson & Johnson has sold its Ortho-Clinical Diagnostics (OCD) business to private equity investor The Carlyle Group for ‘approximately $4 billion’, the companies have announced.
The deal was expected to go through after Carlyle offered $4.15 billion for the division, which provides solutions for screening, diagnosing, monitoring and confirming diseases, in January.
OCD offers its services to hospitals and laboratories and specialises in in vitro diagnostics. It generated net sales of $1.9 billion in 2013. Headquartered in New Jersey, it has manufacturing sites in New York, Florida and Pencoed, Wales.
“As a free-standing company with new leadership and accelerated investment in R&D, OCD is well positioned to tap into rising demand for sophisticated medical diagnostic products and services worldwide,” insists Stephen Wise, Carlyle’s managing director.
Carlyle has installed a new chief executive in Martin Madaus, who has similar roles at Millipore and Roche Diagnostics on his CV.
“We are excited to lead OCD into a new era with a renewed focus on differentiated innovation that targets customer needs,” Madaus says.
“Through targeted reinvestment, and the addition of an executive leadership team with significant diagnostics industry and management experience, we see tremendous opportunity to transform OCD into a leading global player,” he adds.
J&J says it will discuss what financial impact the sale will have on its operation during its scheduled quarterly earnings call on 15 July.
The group’s worldwide sales for 2013 rose 6.1% year-on-year to $71.3 billion, driven by pharma, whose $28.1 billion sales represented an increase of 10.9% on 2012.
Carlyle has put $6.3 billion of equity into healthcare-related deals worldwide: last year it bought Nottingham, UK-based pharma packaging specialist Chesapeake, which has more than 20 manufacturing facilities in the US, Europe and Asia serving pharma customers.
Other deals include Pharmaceutical Product Development (PPD), Grupo Qualicorp, Healthscope, HCR ManorCare and MultiPlan.
Adam Hill
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