J&J Sells Ortho-Clinical for $4 Billion

Giant healthcare conglomerate Johnson & Johnson has announced that it has completed the sale of its Ortho-Clinical Diagnostics (OCD) business to The Carlyle Group for approximately $4 billion.

As we reported at the end of the first quarter, OCD accounted for $1.89 billion in revenue in 2013, which was a nearly 9 percent decline from 2012. The company is composed of two divisions. One supplies equipment and chemicals for screening and typing blood that will eventually wind up in transfusions, while the other does more-advanced blood testing for the diagnosis of a range of health conditions and monitoring of the effects of various medications.

The Carlyle Group is described as a Washington, DC-based global asset management firm specializing in private equity. According to Wikipedia, The Carlyle Group had $170 billion in assets under management across 113 funds and 67 fund of fund vehicles as of December 31, 2012. The firm is said to have more than 1400 employees, including 650 investment professionals, with offices in 33 countries around the globe.

In conjunction with the sale of OCD, Robert Yates will assume the newly-created position of Chief Operating Officer, and will report directly to incoming OCD chairman and CEO, Martin Madaus. Yates will also be appointed to OCD's board of directors.

"We are excited at the prospect of having Robert's diagnostics and executive leadership experience on board at OCD," said Stephen H. Wise, Carlyle managing director. "In partnership with Martin, Robert will contribute significantly to OCD's transformation into a global standalone diagnostics leader." Madaus added, "Robert's strategic perspective and proven leadership abilities align well with OCD's new priorities of profitable growth and differentiated innovation for our customers and for patients around the world."

Yates will join OCD from Merck KgaA, where he was President and CEO of EMD/Merck Millipore, its global life sciences division. At EMD Millipore, Yates finalized the complex transition of Millipore from a standalone company into one integrated, global Life Science division.

Stephen Levy is a contributor to Qmed and MPMN.

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