J&J receives $2.1 bn binding offer from Platinum Equity for diabetes care unit LifeScan

17 March 2018

Johnson & Johnson (J&J) yesterday said that private equity firm Platinum Equity has made a binding offer to buy its diabetes care unit LifeScan Inc, for about $2.1 billion.
J&J had last year said that it is evaluating options for its three diabetes care units Animas Corp, Lifescan, and Calibra Medical, which make glucose meters, insulin pumps and other diabetes equipments.
The New Jersey-based company said that the acceptance period for the offer will end on 15 June 2018, unless extended, and during that time, consultations with relevant works councils are planned.
“If the offer is accepted, the transaction would be expected to close by the end of 2018, subject to the satisfaction of customary closing conditions. This transaction was contemplated in the Company’s guidance provided on January 23, 2018.”
In October last year, Animas Corp, which makes insulin pumps, said it would close its business in North America due to increased competition and after failing to find a buyer.
Reuters had in January reported that a consortium of Sinocare and China Jianyin Investment, owned by sovereign wealth fund China Investment Corp, had hired Goldman Sachs to work on a possible deal with J&J for its three diabetes care units worth up to $4 billion. (See: China's Sinocare in talks to buy J&J's diabetes care units worth around $4 bn) 
LifeScan makes blood glucose monitoring products and its OneTouch brand products are recommended by endocrinologists and primary care physicians than any other brand.
Globally, more than 20 million people depend on OneTouch brand products for simple testing and accurate results.
LifeScan, based in Chesterbrook, Pennsylvania, and Zug, Switzerland, has 2,400 employees, largely in Europe, China and the US and had 2017 net revenue of approximately $1.5 billion.