This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

J&J Blood Screening Unit Draws $4B Bid

Stocks in this article: JNJ CG

NEW YORK (The Deal)--Johnson & Johnson  (JNJ) said Thursday it has a binding offer from Carlyle Group  (CG) to acquire J&J's blood screening and diagnostics unit for $4.15 billion.

New Brunswick, N.J.-based J&J put the unit, Ortho-Clinical Diagnostics, on the block in January 2013 as part of a broader examination of whether that business would benefit from being on its own. At the time, Raritan, N.J.-based OCD generated about $2.07 billion in annual sales.

The company said Thursday it has until March 31 to accept the Carlyle offer. During that time Johnson & Johnson said it would consult with relevant work councils and trade unions, working toward potentially closing the deal by midyear.

Company officials said that the deal makes sense for both sides.

"Ortho-Clinical Diagnostics plays an important role in healthcare, and we're confident that it's well positioned to serve the interests of its patients, customers, and employees," J&J chairman and CEO Alex Gorsky said in a statement. "This transaction is a result of our disciplined approach to portfolio management in order to achieve the greatest value for Johnson & Johnson."

The unit is part of J&J's Medical Devices & Diagnostics operation, one of its three main business lines, along with its consumer health division and its pharmaceuticals segment. The MD&D unit brought in about $27.4 billion of J&J's $67.2 billion in revenue in 2012 and is the largest medical technology entity in the world.

That business took a sizable leap in 2011 when the company agreed to pay $21.3 billion for Swiss medical device maker Synthes in what is the largest deal in J&J's history.

A deal between J&J and Carlyle had been rumored since December, with the Washington, D.C.-based private equity firm reportedly lining up about $3.3 billion in financing for the purchase.

Carlyle has been building its healthcare portfolio in recent years, including joining with Hellman & Friedman in late 2011 to acquire clinical drug testing firm Pharmaceutical Product Development for $3.9 billion.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs