Fortive Offers $2.7 Billion for J&J's Medical-Equipment Sterilization Business

Fortive said Wednesday that the provider of sterilization and disinfection products would help it increase revenue and expand its positions in attractive markets, Chief Executive James Lico said in prepared remarks.

The pharmaceutical and medical-device company on Wednesday confirmed its Ethicon unit received the offer and said it had four months to accept it. If J&J accepts Fortive’s offer, the deal is expected to close by early 2019, both companies said.

“As we balance the interests of all our stakeholders to deliver the greatest value to customers, health-care providers and shareholders, we must continuously assess strategic fit and explore alternatives for our businesses,” said Shlomi Nachman, group chairman for J&J’s interventional solutions and specialty-surgery division.

Mr. Nachman added that the company is confident Fortive would continue Advanced Sterilization’s “long history of pioneering infection prevention technology.”

Advanced Sterilization generated $775 million of revenue in 2017, J&J said.

J&J has been selling off a lot of underperforming businesses to focus on higher growth opportunities, especially in medical devices.

Shares in Fortive rose 5.5% to $79.05 in after-hours trading while J&J shares were flat.

Corrections & Amplifications
Shares in Fortive rose more than 5% after hours. A prior version of the article incorrectly said shares rose 0.5%. (June 6)

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