Sunday, April 19th14.0°C
25936
25222

J&J receives $4.15 billion offer for Ortho-Clinical Diagnostics business from Carlyle Group

TRENTON, N.J. - Johnson & Johnson said Thursday that it's been offered $4.15 billion by The Carlyle Group for its Ortho-Clinical Diagnostics business, a year after J&J began reviewing strategic options for the blood-testing unit as part of a routine pruning of its extensive family of businesses.

J&J, based in New Brunswick, N.J., has until March 31 to decide whether to accept the offer. Johnson & Johnson executives plan to discuss the offer Tuesday, when the health giant and consumer products company reports fourth-quarter results. The company said Thursday that it will consult with works councils and trade unions representing the unit's employees before making a decision.

The Ortho-Clinical business serves hospitals, testing laboratories and blood banks.

One division supplies equipment and chemicals to screen donated blood for HIV, hepatitis C and other serious diseases, and for typing donated blood to ensure patients get safe, compatible blood transfusions. The other division makes technology for advanced testing of blood to diagnose a range of health conditions and to monitor the effects of medication.

Established in 1937, Ortho Clinical Diagnostics is based in Raritan, N.J., and has factories in Rochester, N.Y.; Pompano Beach, Fla., and Pencoed, Wales. It has more than 4,500 employees and operates in more than 30 countries worldwide.

Last January, CEO Alex Gorsky said J&J was looking at strategic options for Ortho-Clinical Diagnostics, which doesn't meet the company's long-held strategy of focusing on businesses that rank first or second in their markets.

In 2012, J&J reported revenue of $2.1 billion for the diagnostics business, down more than 4 per cent from 2011. Revenue fell even more over the first nine months of 2013, when it was down 8 per cent from the prior year at $1.42 billion.

Carlyle Group is a private equity and buyout firm based in Washington, D.C. If the sale goes through, Carlyle is expected to try to expand the business through increased marketing and creation of new products. Carlyle manages more than $185 billion worth of assets worldwide, according to its website.

In afternooon trading, Carlyle shares were up 1 cent at $37. Johnson & Johnson shares were down 25 cents at $94.55. The stock has seen a tremendous run-up since Gorsky took over in April 2012, with shares rising 46 per cent from $64.75 back then.

___

AP Business Writer Tom Murphy in Indianapolis contributed to this report.

The Canadian Press


Read more Business News

25925


Recent Trending




Today's Market
S&P TSX15360.55-26.22
S&P CDNX702.85-2.74
DJIA17826.30-279.47
Nasdaq4931.81-75.98
S&P 5002081.18-23.81
CDN Dollar0.8169-0.0001
Gold1202.90+6.10
Oil55.74-0.57
Lumber248.00-9.80
Natural Gas2.634-0.043

 
Okanagan Companies
Pacific Safety0.12+0.00
Knighthawk0.010.00
QHR Technologies Inc1.40-0.01
Cantex0.035+0.005
Anavex Life Sciences0.33+0.02
Metalex Ventures0.075+0.030
Russel Metals27.48-0.23
Copper Mountain Mining1.13+0.01
Colorado Resources0.10-0.00
ReliaBrand Inc0.005+0.001
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation1.80+0.15

 





FEATURED Property
2150941#313 - 2477 Ingram Road
2 bedrooms 2 baths
$299,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Calling on your help!

Has the internet flattened prices as predicted? Has the internet created opportunities for your business to find higher priced markets further afield? Is posting prices on your website a good thing o...


Living with Plan B

“It does not do to leave a live dragon out of your calculations, if you live near him.”― J.R.R. Tolkien, The Hobbit Photo: Thinkstock.comHuman beings are optimists by nature. Whether...


Reverse mortgage solution

With the housing and financial markets on solid footing, some retired Canadians may consider cashing in their growing assets to enjoy vacations and major home renovations. Others, on the other hand, a...

_



25221

25221


Member of BC Press Council


25692