Bidding for J&J's Ortho Clinical Diagnostics unit heats up

November 8
3:18 PM 2013

Danaher Corp, the healthcare conglomerate has entered into a partnership agreement with Blackstone Group LP for a bid to be submitted for the diagnostics unit of Johnson & Johnson. The unit designs and builds blood screening equipment and laboratory blood tests. 

According to people familiar with the transaction, the J&J Ortho Clinical Diagnostics Unit may reach USD4 billion in value. Aside from Danaher-Blackstone, other interested parties include Bain Capital LLC, Carlyle Group LP, BC Partners Ltd as well as the partnership of CVC Capital Partners and Leonard Green & Partners. 

Johnson & Johnson received preliminary offers for the said division in late September. It has now set an interim round of bidding for November 11. The dates were confirmed by sources who sought anonymity as the matter was still deemed confidential. 

The decision to divest the said unit comes as many pharmaceutical firms are closing down business units as well as reducing costs due to overseas price controls as well as pressure on payments receivable from insurers including the government.

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