NEW BRUNSWICK, N.J., March 16, 2018 /PRNewswire/ — Johnson & Johnson (NYSE: JNJ) today announced that it has received a binding offer from Platinum Equity, a leading private investment firm, to acquire its LifeScan business for approximately $2.1 billion, subject to customary adjustments. LifeScan, Inc. is a leader in blood glucose monitoring products with 2017 net revenue of approximately $1.5 billion.
"LifeScan's OneTouch® blood glucose monitoring products play an important role in the lives of millions of patients living with diabetes, and following a thorough review of all strategic options, we feel confident that the business would have a promising future with Platinum Equity," said Ashley McEvoy, Company Group Chairman, Consumer Medical Devices, Johnson & Johnson. "This initiative is part of our ongoing, disciplined approach to portfolio management to focus on our most promising opportunities to help patients and drive growth."
The Johnson & Johnson Family of Companies will continue to serve those impacted by diabetes through innovative products, services and solutions from its Medical Device, Pharmaceuticals, and Consumer businesses. These include important leadership and innovation in areas such as bariatric surgery and through medicines such as INVOKANA® (canagliflozin) and INVOKAMET® (canagliflozin/metformin HCl).
The acceptance period for the offer will end on June 15, 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.
About LifeScan, Inc.
LifeScan, Inc. is a world leader in blood glucose monitoring. In the US, LifeScan, Inc. is the leading maker of blood glucose monitoring systems and its OneTouch® brand products are recommended by more endocrinologists and primary care physicians than any other brand1. Globally, more than 20 million people depend on OneTouch® brand products for simple testing and accurate results to help them manage their diabetes. For more information visit: www.OneTouch.com.
Note to Investors Concerning Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 related to the divestiture of the LifeScan business. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: the possibility that the transaction will not be completed, or if completed, not completed in the expected timeframe, and the potential that the expected strategic benefits or opportunities from any divestiture may not be realized, or may take longer to realize than expected. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and in the company's subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
1 Global Brand Equity Insights Study, February 2015
SOURCE Johnson & Johnson