Industrial growth company Fortive moved to buy Johnson & Johnson subsidiary Ethicon's advanced sterilization products business, Verdict Medical Devices reports.
Here are five insights:
1. Fortive made a binding offer to buy the unit for $2.8 billion in cash proceeds and retained net receivables. The transaction is expected to close in early 2019.
2. The advanced sterilization products business provides capital, consumables and software solutions for sterilization and disinfection of reusable surgical instruments.
3. The segment's portfolio includes the Sterrad system for sterilizing instruments and the Evotech and Endoclens systems for reprocessing and cleaning endoscopes.
4. The business reported about $775 million in net revenue last year.
5. Fortive President and CEO James Lico said the deal reinforces the company's goal to enhance patient safety and compliance and clinical workflow efficiency.
"As we balance the interests of all our stakeholders to deliver the greatest value to customers, healthcare providers and shareholders, we must continuously assess strategic fit and explore alternatives for our businesses," said Shlomi Nachman, Johnson & Johnson Interventional Solutions and Specialty Surgery company group chairman.