J&J Accepts $4.15 Bln Offer From Carlyle For Ortho-Clinical Diagnostics Unit

(RTTNews) - Healthcare giant Johnson & Johnson Co. (JNJ) has accepted a $4.15 billion offer from private-equity giant Carlyle Group L.P. (CG) to acquire its Ortho-Clinical Diagnostics business.

The offer was originally made about 45 days ago on January 16 and the acceptance period for the offer was to expire today, unless extended.

Raritan, New Jersey-based Ortho Clinical Diagnostics makes tests that can reveal a patient's blood type and screen for viruses like HIV and hepatitis C. It also makes tests that help diagnose a heart attack and detect heart injury.

The unit, with annual sales of about $2 billion, has more than 2,500 employees worldwide. It has manufacturing operations in Rochester, New York, Pompano Beach, Florida, and Cardiff, Wales.

Johnson & Johnson, like other major drug makers, has been divesting non-core businesses and cutting costs amid generic competition.

The Carlyle offer was seen by Johnson & Johnson as superior to a rival bid from private equity giant Blackstone Group (BX) and industrial conglomerate Danaher Corp. (DHR).

Johnson & Johnson had said earlier in January 2013 that it was initiating an exploratory process to evaluate strategic options for the Ortho Clinical Diagnostics business. At that time, the company noted that the unit "could have greater potential from operating as part of another organization whose focus was more closely aligned to its core strengths, or as a stand-alone company."

In early September, media reports indicated that Johnson & Johnson launched a sale process for the unit. The company's advisers were said to have commenced talks with other health-care companies and private equity firms that were interested in buying the unit.

Carlyle revealed in January that it would fund the deal with drawing from Carlyle Partners VI, a $13 billion U.S. buyout fund. The fund completed fundraising in November 2013 with two hundred sixty-nine investors from 43 countries.

JNJ closed Friday's regular trading session at $97.44, down $0.07 on a volume of 8.81 million shares, while CG closed at $34.30, up $0.81 on a volume of 0.60 million shares.