J&J Unit Agrees To Sell Sterilization Unit for $2.7 Billion
September 21 2018 - 5:45PM
Dow Jones News
By Micah Maidenberg
Ethicon Inc., a subsidiary of Johnson & Johnson (JNJ), has
accepted Fortive Corp.'s (FTV) bid for its sterilization and
disinfection products business.
In a securities filing Friday, Fortive said Ethicon agreed to
its $2.7 billion offer for the unit on Sept. 20. The price tag is
subject to adjustments based on the unit's inventory book values at
the time of closing and the amount of prepaid taxes.
Fortive said in the filing that regulators in the U.S., Germany
and Brazil have signed off on the deal. Both sides still must apply
for anti-trust clearance from authorities in Israel.
Either side has the right to terminate the deal if it has not
been completed by April 5, 2019, the filing says.
Fortive, based in Everett, Wa., announced the offer in June,
with an executive at the company saying then the Ethicon
sterilization unit would boost its sales and position it in
attractive markets.
The business produced about $775 million in sales last year,
according to figures from Johnson & Johnson.
Shares of Fortive ticked down 0.4%, to $89.98, on Friday.
Johnson & Johnson's stock rose 0.6%, to $142.88.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
September 21, 2018 17:30 ET (21:30 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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