Johnson & Johnson (NYSE:JNJ) reported that it has obtained a binding proposal from Platinum Equity, a major private investment company, to buy its LifeScan business for around $2.1 billion, depending on customary adjustments. LifeScan is a pioneer in blood glucose monitoring offerings with 2017 net revenue of around $1.5 billion.
Ashley McEvoy of Johnson & Johnson expressed that LifeScan’s OneTouch® offerings play a vital role in the lives of several subjects living with diabetes, and following an exhaustive review of all strategic alternatives, they feel assured that the business would have a strong future with Platinum Equity. This measure is part of their underway, disciplined plan to portfolio management to emphasis on their most promising prospects to help patients and lead growth.
The Johnson & Johnson Family of Companies will remain to serve those affected by diabetes through unique offerings, solutions and services from its Medical Device, Consumer and Pharmaceuticals businesses. These comprise important innovation and leadership in segments such as bariatric surgery and via drugs such as INVOKANA® and INVOKAMET®.
The approval period for the binding offer will close on June 15, 2018, unless extended. During that period, consultations with pertinent works councils are intended. If the offer is approved, the deal would be anticipated to complete by the end of 2018, depending on the satisfaction of customary closing guidelines. This transaction was anticipated in the firm’s guidance issued on January 23, 2018.
LifeScan marks as a world pioneer in blood glucose monitoring. In the United States, the company is the major manufacturer of blood glucose monitoring systems. The company’s OneTouch® brand offerings are recommended by more primary care physicians and endocrinologists than any other brand. Globally, over 20 million individuals depend on OneTouch® brand offerings for simple testing and accurate data so that they can manage their diabetes.