Johnson & Johnson’s (NYSE:JNJ) Ortho Clinical Diagnostics unit, which makes blood screening equipment, is reportedly receiving offers of around $5 billion from private equity firms, according to sources who spoke to Reuters on Monday.
The sources said that Blackstone Group LP (NYSE:BX), KKR & Co. LP (NYSE:KKR), Bain Capital LLC, Carlyle Group LP (NYSE:CG), and BC Partners Ltd. are the firms that have submitted bids for the first round of bidding and are now waiting to hear back from Johnson & Johnson on which have made it past the first cuts. All of those private equity firms and Johnson & Johnson either didn’t respond to requests for comment or declined to comment on the sale, according to Reuters.
Johnson & Johnson announced that it was pursuing strategic alternatives for the unit back in January, and JPMorgan Chase (NYSE:JPM) was asked to manage the sale of the unit. The blood screening equipment and blood tests made by the unit are considered less effective and less profitable than new molecular diagnostics, and Reuters reports that the unit brings in $2 billion per year in sales.