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

Johnson & Johnson's JNJ Ortho Clinical Diagnostics unit is up for sale and two potential buyers are willing to pay $4 billion. Reuters reported that Danaher DHR has joined forces with Blackstone Group 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 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 ABT and Danaher.

J.P. Morgan Chase 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 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.