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J&J Formally Accepts $2.1 Billion Offer for Diabetes Device Unit

J&J Formally Accepts $2.1 Billion Offer for Diabetes Device Unit

(Bloomberg) -- Johnson & Johnson said it will move forward with the $2.1 billion sale of its diabetes monitoring unit LifeScan Inc. to Platinum Equity, a private investment firm.

J&J said in March that it had received a $2.1 billion binding offer from Platinum Equity. On Tuesday, it said it had formally accepted that offer. The health-care company said it expects the deal to close by the end of the year.

New Brunswick, New Jersey-based J&J has been selling off smaller units as the health-care conglomerate gets out of businesses where it’s not a leader. Last week, it announced the sale of a sterilization division to Fortive Corp. for $2.7 billion.

Medical devices and diagnostics are the second-biggest of J&J’s three major areas, which also include drugs and consumer health products. LifeScan makes the OneTouch brand of diabetes monitors, and the division had $1.62 billion in sales last year.

To contact the reporter on this story: Drew Armstrong in New York at darmstrong17@bloomberg.net

To contact the editors responsible for this story: Drew Armstrong at darmstrong17@bloomberg.net, Timothy Annett

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