J&J Unit Agrees To Sell Sterilization Unit for $2.7 Billion

   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 [e-mail]

(END) Dow Jones Newswires

September 21, 2018 17:30 ET (21:30 GMT)

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