Summary
Johnson & Johnson (JNJ) has announced the completion of its divestiture of the LifeScan business to Platinum Equity for approximately $2.1 billion. LifeScan, a significant player in the blood glucose monitoring market, including the well-known OneTouch® brand, generated about $1.5 billion in net revenues in 2017. This strategic move signifies a shift in JNJ's portfolio, potentially allowing the company to reallocate resources and focus on its core pharmaceutical and medical device segments.
Key Highlights
- 1Divestiture of LifeScan business completed for approximately $2.1 billion.
- 2LifeScan is a leading blood glucose monitoring company, known for the OneTouch® brand.
- 3LifeScan generated approximately $1.5 billion in net revenues in 2017.
- 4The transaction was effective October 1, 2018.
- 5The company plans to discuss the divestiture during its Q3 2018 earnings call on October 16, 2018.
- 6This divestiture indicates a strategic realignment of Johnson & Johnson's business segments.
Frequently Asked Questions
Johnson & Johnson divested its LifeScan business, a manufacturer of blood glucose monitoring products including the OneTouch® brand, to Platinum Equity.
The divestiture was completed for approximately $2.1 billion. LifeScan generated approximately $1.5 billion in net revenues in 2017, indicating a sale price representing roughly 1.4 times its 2017 revenue.
Johnson & Johnson will discuss the LifeScan divestiture during its scheduled quarterly earnings call on October 16, 2018.
This divestiture suggests Johnson & Johnson is streamlining its portfolio, likely focusing on higher-growth or more strategically aligned segments within its pharmaceutical and medical device divisions. The proceeds from the sale could be used for reinvestment, debt reduction, or share repurchases.