01.17.14
It's no secret that Johnson & Johnson has been looking to divest its Ortho-Clinical Diagnostics (OCD) business. The company said in January 2013 it was shopping for a buyer. Well, a deal is finally in place.
Private-equity giant Carlyle Group said it has reached a tentative $4.15 billion deal with JNJ to purchase the business. According to Carlyle, it could close on the acquisition as soon as mid-2014. Under the terms of the offer, JNJ it has until March 31 to accept it.
Ortho-Clinical Diagnostics makes tests that can reveal a patient's blood type and screen for viruses. It also makes tests that help diagnose a heart attack and assess damage to the heart. The testing business is part of a $46 billion worldwide market for in-vitro diagnostics that is growing 6-7 percent a year, according to Frost & Sullivan, a market research and consulting firm.
In a statement, Carlyle Managing Director Stephen H. Wise said, "Ortho-Clinical Diagnostics is an established global brand with a reputation for quality and innovation. Through accelerated investment in research and product development and continued expansion into both emerging and established markets, we expect to tap into rising demand for sophisticated medical diagnostic products and services worldwide.
"We have been focused on the diagnostics industry for many years given its attractive growth prospects, driven by the crucial role it plays in health care decision-making and influencing patient outcomes. We believe that OCD, with its world-class employee base and talented management team, is poised for the next level of success."
OCD was formed out of the medical diagnostics business Kodak sold to JNJ in 1994.
“Ortho-Clinical Diagnostics plays an important role in health care, and we’re confident that it’s well-positioned to serve the interests of its patients, customers and employees,” said Alex Gorsky, chairman and CEO of Johnson & Johnson. “This transaction is a result of our disciplined approach to portfolio management in order to achieve the greatest value for Johnson & Johnson.”
Private-equity giant Carlyle Group said it has reached a tentative $4.15 billion deal with JNJ to purchase the business. According to Carlyle, it could close on the acquisition as soon as mid-2014. Under the terms of the offer, JNJ it has until March 31 to accept it.
Ortho-Clinical Diagnostics makes tests that can reveal a patient's blood type and screen for viruses. It also makes tests that help diagnose a heart attack and assess damage to the heart. The testing business is part of a $46 billion worldwide market for in-vitro diagnostics that is growing 6-7 percent a year, according to Frost & Sullivan, a market research and consulting firm.
In a statement, Carlyle Managing Director Stephen H. Wise said, "Ortho-Clinical Diagnostics is an established global brand with a reputation for quality and innovation. Through accelerated investment in research and product development and continued expansion into both emerging and established markets, we expect to tap into rising demand for sophisticated medical diagnostic products and services worldwide.
"We have been focused on the diagnostics industry for many years given its attractive growth prospects, driven by the crucial role it plays in health care decision-making and influencing patient outcomes. We believe that OCD, with its world-class employee base and talented management team, is poised for the next level of success."
OCD was formed out of the medical diagnostics business Kodak sold to JNJ in 1994.
“Ortho-Clinical Diagnostics plays an important role in health care, and we’re confident that it’s well-positioned to serve the interests of its patients, customers and employees,” said Alex Gorsky, chairman and CEO of Johnson & Johnson. “This transaction is a result of our disciplined approach to portfolio management in order to achieve the greatest value for Johnson & Johnson.”