J&J continues to shed assets, with $2.1bn diabetes unit sale
Just last week, Johnson & Johnson announced that it had received an offer from Fortive for its medical sterilisation unit, potentially bringing in $2.8 billion. It has now revealed that it has accepted a $2.1 billion offer for LifeScan from Platinum Equity.
J&J actually received the first offer back in March and were given a deadline of mid-June to decide whether to accept the offer.
It has decided to accept the offers, and it seems that the big pharma company is clearing house where it doesn’t feel it has a particularly strong foothold.
The LifeScan unit produces the OneTouch brand of diabetes monitors, but the market is particularly crowded and its devices are not market leaders.
The unit brought in approximately $1.5 billion in sales during the 2017 financial year but the unit’s sales have been steadily falling since 2012.
The move also follows the decision to entirely close its Animas insulin pump business, after failing to secure a buyer for the business.
“We have great respect for Johnson & Johnson and appreciate their confidence in our ability to execute,” said Platinum Equity Chairman and CEO Tom Gores, at the time the bid was launched. “This is an important investment for us in a business that serves millions of patients around the world. We are committed to putting our financial resources and global operating expertise to work in support of the company’s core mission to improve the quality of life for people living with diabetes.”
J&J revealed that it expects the deal to close by the end of the year.
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