Receive our newsletter – data, insights and analysis delivered to you
  1. News
June 7, 2018

J&J receives $2.8bn offer for Advanced Sterilization Products

Industrial growth company Fortive has made a binding offer to buy Johnson & Johnson (J&J) subsidiary Ethicon's Advanced Sterilization Products (ASP) business for a total consideration of $2.8bn.

Industrial growth company Fortive has made a binding offer to buy Johnson & Johnson (J&J) subsidiary Ethicon’s Advanced Sterilization Products (ASP) business for a total consideration of $2.8bn.

The offer involves $2.7bn cash proceeds and the remaining in retained net receivables. Its acceptance period is 120 days from the date of the offer.

ASP provides capital, consumables and software solutions for low-temperature terminal sterilisation and high-level disinfection of reusable surgical instruments in order to prevent hospital-acquired infections.

“The offer will be subject to customary closing conditions and regulatory approvals, following which it is expected to be closed early next year.”

The unit’s portfolio includes Sterrad system to sterilise instruments, and Evotech and Endoclens systems for reprocessing and cleaning endoscopes. The business reported net revenue of around $775m last year.

Fortive president and CEO James Lico said: “We are excited about today’s announcement which demonstrates the continued evolution of our portfolio towards improving growth, increasing recurring revenue, and expanding positions in attractive markets.

“With ASP, we expect to acquire a global leader in medical sterilisation and disinfection, with a large installed base and very strong brands.”

Content from our partners
Precision wire: The future of bespoke medical treatment
Why this global life sciences COO believes relocation to Charleston, SC, was key to achieving next-level success
“This technique means everything to us”: How CGM devices empower users 

Lico added that the deal is in line with the company’s goal to enhance patient safety and compliance, while improving the efficiency of clinical workflows.

Johnson & Johnson Interventional Solutions and Specialty Surgery company group chairman Shlomi Nachman said: “As we balance the interests of all our stakeholders to deliver the greatest value to customers, healthcare providers and shareholders, we must continuously assess strategic fit and explore alternatives for our businesses.

“ASP has a long history of pioneering infection prevention technology, and we are confident that Fortive would be well-positioned to continue to drive the business toward achieving its full potential.”

If accepted, the offer will be subject to customary closing conditions and regulatory approvals, following which it is expected to be closed early next year.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The medical device industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU