NEW YORK (The Deal) -- Germany's Bayer (BAYRY) on Wednesday agreed to sell its diabetes care business to Kohlberg Kravis Roberts-backed Panasonic Healthcare Holdings as the financial investor buyer adds to its two-year-old acquisition.
"Together, we will leverage our experience and network to create a global diabetes care solutions powerhouse in an effort to make this a transformational transaction for the diabetes care industry," said KKR European head Johannes P. Huth in a statement.
KKR bought Panasonic Healthcare two years ago from Panasonic Corp. (PCRFY) in a deal valued at $1.7 billion. Panasonic Corp. thought it didn't have the capital or resources to properly expand the unit, which makes medical devices and related software including products for diabetics.
Wednesday's acquisition is the company's first big acquisition under KKR and will broaden Panasonic Healthcare's distribution network, the buyer said.
The Bayer business includes Bayer's Contour blood monitoring devices for measuring blood sugar as well as analytical software and the related lances to extract blood. The unit had €909 million in sales last year.
Bayer Chief Executive Marijn Dekkers has been working to rid the company of assets that don't fit its strategic focus and which weigh down its share price with a conglomerate discount. His reshuffle included an unsuccessful attempt to sell the diabetes business two years ago before it was put back on the block in November.