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J&J is said to explore sale of US$2b sterilisation division
[NEW YORK] Johnson & Johnson is seeking buyers for its sterilisation products division, people familiar with the matter said, as the health-care conglomerate continues to sell off non-core assets.
J&J is working with an adviser to solicit bids for the unit, which could fetch as much as US$2 billion, the people said, asking not to be identified as the details aren't public. The asset is drawing interest from strategic buyers as well as private equity firms, the people said. Bids are due this week, they said.
No final decision has been made and J&J may choose not to divest the division.
A spokesman for New Brunswick, New Jersey-based J&J declined to comment.
The advanced sterilisation products unit, known as ASP, makes systems and solutions to clean medical tools. Its products, which are sold globally, include the Sterrad system for sterilising instruments and Cidex OPA solution for disinfecting scopes.
J&J has been reviewing divisions as it continues to streamline its portfolio, including its over-the-counter business, diabetes-care unit and medical devices. In 2017, it agreed to sell its blister and lip-care treatment Compeed to HRA Pharma.
At the same time, the company has been investing in a new generation of medicines as some of its best-selling drugs begin to lose dominance. J&J bought Swiss biotechnology firm Actelion Ltd. for US$30 billion last year, its biggest-ever acquisition.