Bayer’s Diabetes Care business produces blood glucose monitoring systems, lancing devices and diabetes management software. The business reported €909m sales in 2014.

Bayer management board member and Bayer HealthCare CEO Werner Baumann said: "We are confident that the sale of our Diabetes Care business to our long-standing partner Panasonic Healthcare, with the strong backing of KKR, will support the long-term sustainability of this portfolio."

Under the deal, Panasonic will acquire Bayer’s Contour portfolio of blood glucose monitoring meters and strips, in addition to products such as Breeze 2, Elite, Entrust and Microlet lancing devices.

The Contour portfolio includes products such as Contour Next, Contour Plus, Contour and Contour TS, which are designed to meet the needs of patients with different type of diabetes, stage of disease or testing frequency.

Panasonic Healthcare Holdings and Panasonic Healthcare CEO Kenji Yamane said: "We anticipate that this partnership will take our two great businesses to new heights, and we wholly welcome the BDC team as full partners to Panasonic Healthcare."

Subject to customary conditions, the deal is expected to be completed in the first quarter of 2016.

Image: Bayer’s Contour Next devices. Photo: courtesy of Bayer HealthCare Germany.