J&J looks to trim business with $2.8bn sale
Johnson & Johnson continues to look at options to slim down its business, after having received an offer from Fortive to sell its medical-sterilisation unit for $2.8 billion.
The deal consists of $2.7 billion in cash and $0.1 billion of retained net receivables.
For J&J, it is trying to divest units that have slower growth compared to the rest of the business. After its $30 billion deal for Actelion, it is clearly trying to focus on the higher growth area of pharmaceuticals into the long-term.
The advanced sterilisation products (ASP) unit makes consumables and software for use in lower temperature terminal sterilisation and high-level disinfection of reusable surgical instruments.
“As we balance the interests of all our stakeholders to deliver the greatest value to customers, healthcare providers and shareholders, we must continuously assess strategic fit and explore alternatives for our businesses,” said Shlomi Nachman, Company Group Chairman at J&J, Interventional Solutions and Specialty Surgery.
He continued, “ASP has a long history of pioneering infection prevention technology, and we are confident that Fortive would be well-positioned to continue to drive the business toward achieving its full potential.”
Fortive was recently spun out of the Danaher Corporation behemoth, in 2016, and is an industrial technology and professional instrumentation company. The deal for J&J’s unit would represent the biggest acquisition that the independent company has made so far.
J&J’s ASP business brought in sales of $775 million last year.
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