Fortive bids to buy Johnson & Johnson sterilisation business

15-Jun-2018

New Jersey-based company is entertaining a US$2.8 billion offer for its Advanced Sterilization Products (ASP)

Johnson & Johnson has received a binding offer from Fortive Corporation to acquire its Advanced Sterilization Products (ASP) business for an aggregate value of approximately US$2.8 billion. The deal consists of $2.7 billion of cash proceeds from Fortive and $0.1 billion of retained net receivables.

Ethicon is part of the Johnson & Johnson Medical Devices companies. ASP, a division of Ethicon, Inc., is deemed a global leader in innovative infection prevention solutions with 2017 net revenue of approximately $775 million.

"As we balance the interests of all our stakeholders to deliver the greatest value to customers, healthcare providers and shareholders, we must continuously assess strategic fit and explore alternatives for our businesses,” said Shlomi Nachman, company group chairman, Interventional Solutions and Specialty Surgery. “ASP has a long history of pioneering infection prevention technology, and we are confident that Fortive would be well-positioned to continue to drive the business toward achieving its full potential."

The acceptance period for the offer will end 120 days from the date of the offer (6 June), unless extended, and during that time consultations with relevant work councils are planned.

If the offer is accepted, the proposed transaction would be expected to close no later than early 2019, subject to customary closing conditions and regulatory approvals.

Sign up for your free email newsletter

ASP supports healthcare facilities in the fight to protect patients against hospital-acquired infections, which are a leading cause of morbidity and mortality. ASP solutions include capital, consumables and software for use in low-temperature terminal sterilisation and high-level disinfection of reusable surgical instruments.

Companies