Fortune 500 startup Fortive Corporation acquires a Johnson & Johnson division for $2.8bn

Fortune 500 startup company Fortive Corporation’s diverse portfolio is set to gain a further division. It has recently been announced that the business has sent Johnson & Johnson a binding offer to acquire its Advanced Sterilization Products (ASP) business, a division of Ethicon, Inc., for an aggregate value of approximately $2.8bn.

ASP is a global leader in innovative infection prevention solutions with 2017 net revenue of approximately $775mn.

With an investment to accelerate innovation across the healthcare sector, Fortive remains keen to further enhance its portfolio by harnessing top talent and technology to build competitive and drive increased value across its operations.

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"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, Company Group Chairman, Interventional Solutions and Specialty Surgery.

"ASP has a long history of pioneering infection prevention technology, and we are confident that Fortive would be well-positioned to continue to drive the business toward achieving its full potential."

The acceptance period for the offer will end 120 days from the date of the offer, unless extended.  If the offer is accepted, the proposed transaction would be expected to close no later than early 2019.

ASP supports healthcare facilities in the fight to protect patients against hospital-acquired infections, which are a leading cause of morbidity and mortality. ASP solutions include capital, consumables and software for use in Low-Temperature Terminal Sterilisation and High-Level Disinfection of reusable surgical instruments.

Sidley's Sharon Flanagan (Corporate – San Francisco), Aaron Rigby (Corporate – Dallas) and Meenakshi Datta (Healthcare – Chicago) all served as lead corporate counsel to Fortive.