LOS ANGELES, March 16, 2018 (GLOBE NEWSWIRE) -- Platinum Equity announced today that it has submitted a binding offer to acquire LifeScan, Inc. from Johnson & Johnson (NYSE: JNJ) in a transaction valued at approximately $2.1 billion. LifeScan is a leader in blood glucose monitoring products with 2017 net revenue of approximately $1.5 billion.
“We have great respect for Johnson & Johnson and appreciate their confidence in our ability to execute,” said Platinum Equity Chairman and CEO Tom Gores. “This is an important investment for us in a business that serves millions of patients around the world. We are committed to putting our financial resources and global operating expertise to work in support of the company’s core mission to improve the quality of life for people living with diabetes.”
Headquartered in Chesterbrook, Pennsylvania and Zug, Switzerland, LifeScan serves approximately 20 million patients globally in more than 90 countries.
The company markets blood glucose monitoring systems for home and hospital use under the global brand OneTouch. The OneTouch portfolio includes personal blood glucose meters, testing strips, lancets, point of care testing systems and integrated digital solutions
“LifeScan has been a leader in diabetes care for more than 30 years and has consistently developed and brought to market industry leading products,” said Platinum Equity Partner Jacob Kotzubei. “We have worked closely with Johnson & Johnson to craft a divestiture solution for LifeScan that would create a global standalone business and set the stage for continued investment in growth and innovation.”
LifeScan President Valerie Asbury would continue leading the business following the change in ownership.
“Once our offer is accepted we will work with the management team to ensure a seamless transition on behalf of patients, healthcare providers and the company’s employees around the world,” added Mr. Kotzubei.
The acceptance period for the offer will end on June 15, 2018, unless extended, and during that time, consultations with relevant works councils are planned. If the offer is accepted, the transaction would be expected to close by the end of 2018, subject to the satisfaction of customary closing conditions.
Morgan Lewis is serving as legal advisor to Platinum Equity on the acquisition of LifeScan.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of more than 30 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 22 years Platinum Equity has completed more than 200 acquisitions.
Contact: Dan Whelan, Platinum Equity (310) 282-9202 email@example.com
Source: Platinum Equity