Market Overview

Johnson & Jonhson Unit Could Fetch Over $4 Billion in Sale

Johnson & Jonhson Unit Could Fetch Over $4 Billion in Sale
Related JNJ
Facebook, Google Make Glassdoor's List Of Top 50 Places To Work
Karyopharm Therapeutics' Top Execs Talk Recent Results In Multiple Myeloma And Acute Myeloid Leukemia
Is Rebalancing A Stock Portfolio A Form Of Value Investing? (Seeking Alpha)

Johnson & Johnson's (NYSE: JNJ) Ortho Clinical Diagnostics unit is up for sale and two potential buyers are willing to pay $4 billion. Reuters reported that Danaher (NYSE: DHR) has joined forces with Blackstone Group (NYSE: BX) to bid for the unit that makes blood screening equipment and laboratory blood tests. The tests can reveal viruses like HIV and hepatitis C and can also reveal a patient's blood type.

The Danaher-Blackstone partnership is one of many offers that are on the table. Other bidders for the unit include well-known private equity firms such as Bain Capital, Carlyle Group (NASDAQ: CG), BC Partners and a partnership of CVC Capital Partners and Leonard Green & Partners. Johnson & Johnson was hoping to collect $5 billion from the sale, but people close to the sale are placing a $4 billion valuation on the unit, according to Reuters.

Reuters reported that the Dow component is seeking a new round of bids by November 11. The unit has annual sales of about $2 billion and is considered a smaller player compared to its competitors such as Roche Holding AG, Siemens AG, Abbot Laboratories (NYSE: ABT) and Danaher.

J.P. Morgan Chase (NYSE: JPM) is acting as advisor to the company who has been exploring strategic alternatives for the unit since January. Johnson & Johnson is following the lead set by rival, Pfizer (NYSE: PFE), who spun off its animal health products business earlier this year.

Shares of Johnson & Johnson were trading slightly higher, up 0.8 percent. Danaher shares were up as much as 3.5 percent, hitting new historical highs of $74.38 a share.

Posted-In: News Retail Sales


Related Articles (ABT + BX)

View Comments and Join the Discussion!