Carlyle Wins $4B Bid for J&J’s Blood Testing Unit


Johnson & Johnson (NYSE:JNJ) has accepted an $4 billion offer from private equity firm the Carlyle Group for its blood testing unit. According to a Johnson & Johnson press release, “The transaction is expected to close toward the middle of the year, upon satisfaction of customary closing conditions.”

The Carlyle Group made its binding offer on Ortho-Clinical Diagnostics on January 16 for $4.15 billion. At that time, Johnson & Johnson said the company needed to talk to the work councils and trade unions that represent its employees before continuing with a decision, according to an ABC News report.

“We have been focused on the diagnostics for many years given its attractive growth prospects, driven by the crucial role it plays in health care decision-making and influencing patient outcomes,” a Carlyle Group representative said to USA Today. “We believe that OCD, with its world class employee base and talented management team, is poised for the next level of success.”

Ortho-Clinical Diagnostics, the blood testing unit sold to the Carlyle Group, is based in Raritan, New Jersey, and currently employee some 4,500 workers, according to ABC News. The business runs manufacturing facilities in Rochester, New York; Pompano Beach, Florida; and Pencoed, Wales

Ortho-Clinical supplies blood testing equipment and chemicals to hospitals, testing laboratories, and blood banks; the equipment is used to screen for HIV, hepatitis C, and other serious diseases, ABC News reports. The company also manufactures technology that tests the blood in order to diagnose health conditions and monitor the effects of medications.

Johnson & Johnson announced last year that the company was interested in divesting Ortho-Clinical. Alex Gorsky, the company’s CEO, said at the time that the company was looking to spin off the unit in an effort to focus on businesses that rank first or second in its markets.

The Carlyle Group has continuously invested in healthcare businesses since its inception in 1987. The private equity firm has invested about $6.3 billion of equity into healthcare transactions to date, according to USA Today. Among its other healthcare industry acquisitions are Pharmaceutical Product Development, Grupo Qualicorp, Healthscope Limited, HCR ManorCare, and MultiPlan.

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