Global alternative asset manager The Carlyle Group has agreed to acquire Johnson & Johnson’s Ortho-Clinical Diagnostics (OCD) business for $4.15bn.
The transaction is subject to customary regulatory approvals and is expected to close in the middle of 2014.
Carlyle managing director Stephen H Wise noted Ortho-Clinical Diagnostics is an established global brand with a reputation for quality and innovation.
"Through accelerated investment in research and product development and continued expansion into both emerging and established markets, we expect to tap into rising demand for sophisticated medical diagnostic products and services worldwide.
"We have been focused on the diagnostics industry for many years given its attractive growth prospects, driven by the crucial role it plays in health care decision-making and influencing patient outcomes. We believe that OCD, with its world class employee base and talented management team, is poised for the next level of success," Wise added.
Equity for the transaction comes from Carlyle Partners VI, a $13bn US Buyout fund, which completed fundraising in November 2013 with 269 investors from 43 countries.
Since inception, Carlyle has invested $6.3bn of equity in healthcare transactions around the globe. Current and former investments include: Pharmaceutical Product Development (PPD), Grupo Qualicorp, Healthscope Limited, HCR ManorCare and MultiPlan.
Barclays and Goldman Sachs are acting as financial advisors to Carlyle, which has secured committed debt financing from Barclays, Goldman Sachs, Credit Suisse, UBS and Nomura. Latham & Watkins is acting as legal advisor to Carlyle.