The Carlyle Group has agreed to acquire Johnson & Johnson’s Ortho-Clinical Diagnostics business for $4.15 billion. Equity for the transaction comes from Carlyle Partners VI, a $13 billion fund which closed above target in November 2013. The transaction is expected to close in the middle of 2014.
Ortho-Clinical Diagnostics (OCD) provides screening, diagnosing, monitoring and disease confirmation services to the clinical laboratory and transfusion medicine sectors. Customers include hospitals, laboratories and blood centers worldwide. OCD is headquartered in Raritan, NJ, with manufacturing operations in Rochester, NY; Pompano Beach, FL; and Pencoed, Wales (www.orthoclinical.com).
“Ortho-Clinical Diagnostics is an established global brand with a reputation for quality and innovation. Through accelerated investment in research and product development and continued expansion into both emerging and established markets, we expect to tap into rising demand for sophisticated medical diagnostic products and services worldwide,” said Stephen Wise, a Managing Director of The Carlyle Group.
The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. The firm employs 1,450 people in 34 offices across six continents and is based in Washington, DC (www.carlyle.com).
“We have been focused on the diagnostics industry for many years given its attractive growth prospects, driven by the crucial role it plays in health care decision-making and influencing patient outcomes,” said Mr. Wise. “We believe that OCD, with its world class employee base and talented management team, is poised for the next level of success.”
Barclays and Goldman Sachs are acting as financial advisors to The Carlyle Group, which has secured committed debt financing from Barclays, Goldman Sachs, Credit Suisse, UBS and Nomura. Latham & Watkins is acting as legal advisor to Carlyle.
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-16-14
