J&J gets offer from Platinum Equity to buy LifeScan for $2.1 billionMarch 16, 2018
Johnson & Johnson has received a binding offer from Platinum Equity, a private investment firm, to acquire its LifeScan business for approximately $2.1 billion, it announced Friday.
LifeScan, Inc. is a leader in blood glucose monitoring products with 2017 net revenue of approximately $1.5 billion, JNJ said in its press release.
“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,” said Ashley McEvoy, Johnson’s Group Chairman. “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,” McEvoy said.
As J’nJ noted, 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.
Image: Bottles of Johnson & Johnson baby powder line a drugstore shelf in New York October 15, 2015. REUTERS/Lucas Jackson/File Photo