Industrial equipment maker Fortive is offering to snap up Johnson & Johnson’s advanced sterilization business for about $2.8 billion, the company said.
The bid, which includes $2.7 billion in cash and $100 million in retained net receivables, is for Advanced Sterilization Products, which is a division of J&J’s Ethicon. Last year, ASP reported net revenues of about $775 million. The unit makes products used in low-temperature terminal sterilization and high-level disinfection of reusable surgical instruments.
J&J has 120 days to consider the offer and, if accepted, the deal would likely close by early next year, the company said.
Everett, Washington-based Fortive, which was spun off from from Danaher in 2016, said it plans to finance the deal through debt or equity and with available cash.
“With ASP, we expect to acquire a global leader in medical sterilization and disinfection, with a large installed base and very strong brands,” James Lico, Fortive’s president and CEO, said in a statement.
Earlier this year, private equity group Platinum Equity offered J&J $2.1 billion for LifeScan, its blood glucose monitoring business. Last year, J&J indicated it was looking to offload LifeScan along with its other diabetes device units Animas and Calibra Medical.