Printer Friendly

Fortive Closes Acquisition of Johnson and Johnson's Advanced Sterilization Products Business.

M2 EQUITYBITES-April 2, 2019-Fortive Closes Acquisition of Johnson and Johnson's Advanced Sterilization Products Business

(C)2019 M2 COMMUNICATIONS http://www.m2.com

2 April 2019 - US-based industrial company Fortive Corp. (NYSE: FTV) has closed the acquisition of US-based healthcare company Johnson and Johnson's (NYSE: JNJ) Ethicon, Inc subsidiary's Advanced Sterilization Products business for approximately USD 2.7bn in cash, the company said.

Based on financial measures provided by Johnson and Johnson, ASP generated 2017 revenue of approximately USD 775m (unaudited) and adjusted EBITDA margin of approximately 25% (unaudited).

ASP is a provider of sterilisation and disinfection solutions and pioneered low-temperature hydrogen peroxide sterilisation technology.

ASP's products, which are sold globally, include the Sterrad system for sterilizing instruments and the Evotech and Endoclens systems for endoscope reprocessing and cleaning.

ASP's Sterrad systems are complemented with the industry leading Velocity rapid-read biological indicator, enabling operating room uptime.

Sterrad systems with ALLClear Technology and the Velocity Biological Indicator Readers are fully-integrated and network-connected, minimizing the need for manual documentation of vital sterilisation information in hospital centralized sterilization services departments.

The seamless communication and integration with instrument tracking systems and hospital networks, thereby enhances hospital compliance and improves productivity.

Evotech and Endoclens systems are sold with the brand-leading Cidex family of disinfecting solutions for endoscopes and other medical instruments.

Fortive expects the transaction to be accretive to adjusted net earnings in the first full year. The company plans to finance the acquisition with available cash and proceeds from issuance of debt and/or equity.

Fortive is a diversified industrial growth company comprised of Professional Instrumentation and Industrial Technologies businesses that are recognised leaders in attractive markets.

With 2017 revenues of USD 6.7bn, Fortive's well-known brands hold leading positions in field instrumentation, transportation, sensing, product realization, automation and specialty, and franchise distribution.

Fortive is headquartered in Everett, Washington and employs a team of more than 26,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 50 countries around the world.

With a culture rooted in continuous improvement, the core of our company's operating model is the Fortive Business System.

Goldman Sachs and Co. LLC. served as financial advisor to Fortive and Sidley Austin LLP and WilmerHale served as legal advisors to Fortive.

((Comments on this story may be sent to info@m2.com))

COPYRIGHT 2019 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 EquityBites (EQB)
Date:Apr 2, 2019
Words:384
Previous Article:Independent Bank Corp, Rockland Trust Close Acquisition of Blue Hills Bank to Expand Presence in Massachusetts.
Next Article:Valley Republic Bancorp closes subordinated notes offering.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters