Platinum Equity’s $2.1 Billion offer to Acquire its LifeScan Business

Cravath is representing Johnson & Johnson in connection with the transaction.

Johnson & Johnson (NYSE: JNJ) has received a binding offer from Platinum Equity, a leading private investment firm, to acquire its LifeScan business for approximately $2.1 billion, subject to customary adjustments. LifeScan, Inc. is a leader in blood glucose monitoring products with 2017 net revenue of approximately $1.5 billion.

The Johnson & Johnson Family of Companies will continue to serve those impacted by diabetes through innovative products, services and solutions from its Medical Device, Pharmaceuticals, and Consumer businesses. These include important leadership and innovation in areas such as bariatric surgery and through medicines such as INVOKANA® (canagliflozin) and INVOKAMET® (canagliflozin/metformin HCl).

The acceptance period for the offer will end on June 15, 2018, unless extended, and during that time, consultations with relevant works councils are planned. If the offer is accepted, the transaction would be expected to close by the end of 2018, subject to the satisfaction of customary closing conditions. This transaction was contemplated in the Company’s guidance provided on January 23, 2018.

LifeScan, Inc. is a world leader in blood glucose monitoring. In the U.S., LifeScan, Inc. is the leading maker of blood glucose monitoring systems and its OneTouch® brand products are recommended by more endocrinologists and primary care physicians than any other brand

Johnson & Johnson manufactures health care products and provides related services for the consumer, pharmaceutical, and medical devices and diagnostics markets. The company, led by Alex Gorsky, Ronald A Kapusta and Alison Lewis, in 2017 recorded $76 Billion Revenues.

The Cravath team is led by partners Robert I. Townsend III (Picture), Damien R. Zoubek and Jenny Hochenberg and includes associates Zachary A. Portnoy, Sarah K. Johnson, Madeleine S. Shiff and Aashim Usgaonkar on M&A matters; partners George E. Zobitz and Craig F. Arcella and associates Holden K. Sumner and Sanjay Murti on financing matters; partner J. Leonard Teti II and associate Andrew T. Davis on tax matters; partner David J. Kappos and associate Nicholas Kypriotakis on intellectual property matters; partner Jonathan J. Katz and associates Matthew J. Bobby, Michelle M. Garrett and Jana I. Hymowitz on executive compensation and benefits matters; partner Matthew Morreale on environmental matters; and senior attorney Joyce Law and practice area attorney Brian M. Budnick on real estate matters. Michelle Li also worked on M&A matters.

 

Involved fees earner: Robert Townsend III – Cravath Swaine & Moore; Damien Zoubek – Cravath Swaine & Moore; Jenny Hochenberg – Cravath Swaine & Moore; Zachary A. Portnoy – Cravath Swaine & Moore; Sarah Johnson – Cravath Swaine & Moore; Madeleine Shiff – Cravath Swaine & Moore; Aashim Usgaonkar – Cravath Swaine & Moore; George E. Zobitz – Cravath Swaine & Moore; Craig Arcella – Cravath Swaine & Moore; Holden Sumner – Cravath Swaine & Moore; Sanjay Murti – Cravath Swaine & Moore; J. Leonard Teti II – Cravath Swaine & Moore; Andrew Davis – Cravath Swaine & Moore; David Kappos – Cravath Swaine & Moore; Nicholas Kypriotakis – Cravath Swaine & Moore; Jonathan J. Katz – Cravath Swaine & Moore; Matthew Bobby – Cravath Swaine & Moore; Michelle Garrett – Cravath Swaine & Moore; Jana Hymowitz – Cravath Swaine & Moore; Matthew Morreale – Cravath Swaine & Moore; Joyce Law – Cravath Swaine & Moore; Brian Budnick – Cravath Swaine & Moore;

Law Firms: Cravath Swaine & Moore;

Clients: Johnson & Johnson;

 

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Author: Ambrogio Visconti