Johnson & Johnson has announced last Friday it has received a binding offer from Platinum Equity, a private investment firm, to acquire its LifeScan business for approximately $2.1 billion, subject to customary adjustments.
The global giant said in a statement LifeScan, Inc. manufactures blood glucose monitoring products with 2017 net revenue of approximately $1.5 billion.
“LifeScan’s OneTouch(R) 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,” said Ashley McEvoy, Company Group chairman, Consumer Medical Devices, Johnson & Johnson. “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 Johnson & Johnson Family of Companies said it will continue to serve those impacted by diabetes through innovative products, services and solutions from its Medical Device, Pharmaceuticals, and Consumer businesses. These include important leadership and innovation in areas such as bariatric surgery and through medicines such as INVOKANA(R) (canagliflozin) and INVOKAMET(R) (canagliflozin/metformin HCl).
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 the Company’s guidance provided on January 23, 2018.
