Bayer weighs sale of diabetes device business worth up to $2.5 bn

German drugmaker Bayer AG is weighing the sale of its diabetes device business worth between €1 billion to €2 billion ($1.25 billion to $2.5 billion)  Bloomberg today reported, citing people familiar with the matter.

The report said that Credit Suisse Group is advising Bayer on the potential sale and the business may attract bids from private equity firms like Cinven Ltd, EQT Partners and Triton Advisers.

Bayer, which is exploring a plan to list its plastics unit for around $10.8 billion, is also looking to swap its animal health unit and pay some cash in exchange for Merck & Co's consumer healthcare business. (See: Bayer offers to swap cash and animal health unit for Merck's consumer healthcare).

It has already agreed in May to buy the consumer care business of Merck & Co for $14.2 billion.

Bayer's diabetes device business makes blood glucose monitoring devices such as the single-strip Contour system and the multi-strip Breeze system.

It also markets the Contour USB meter, which features integrated diabetes management software and direct plug-in to computers. Outside Europe, these products are generally sold to consumers through pharmacies, drugstores, hospitals or wholesalers, while in Europe they are sold mainly through pharmacies.

It is also the world's leading supplier of contrast agent injection systems for diagnostic procedures in computed tomography, magnetic resonance imaging and molecular imaging.

The business is based in New Jersey and has annual sales of €2.5 billion.