Johnson & Johnson, the pharmaceutical and medical-device giant, has accepted a $4 billion offer from the Carlyle Group to acquire its Ortho-Clinical Diagnostics business.
The New Brunswick, N.J.-based company disclosed plans to divest the unit in January; the divestiture is expected to close mid-year. J&J said it consulted with work councils and trade unions before accepting the private equity firm's offer.
Ortho-Clinical Diagnostics makes products for clinical laboratories and blood banks. The company only breaks out earnings for three segments—consumer, pharmaceutical, and medical device and diagnostics—but said broadly on an earnings call that its diagnostics business declined 9.4% on an operational basis.
J&J began exploring options for the group last year to respond to competitive pressures, it said.
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