Fortive to acquire J&J’s ASP business

NEW YORK: Fortive Corp will buy Johnson & Johnson’s medical sterilisation unit for $2.7 billion, adding a range of new products to the company that was spun off from medical and industrial parts giant Danaher Corp in 2016.

J&J’s advanced sterilisation products (ASP) business, part of its Ethicon Inc unit, generated revenue of about $775 million in 2017, Fortive said in a statement on Wednesday announcing the transaction.

For J&J, it’s yet another move to streamline its broad portfolio of businesses as part of a review that has included over-thecounter drugs, diabetes care and some medical devices.

Based in Everett, Washington, Fortive makes instruments and other technologies, such as GPS tracking products, for industrial customers.

Backed by the billionaire brothers Steven and Mitchell Rales, the spin-off was meant to separate the parent company’s science, technology and medical businesses while Fortive focused on industrial businesses.

“We expect to acquire a global leader in medical sterilisation and disinfection, with a large installed base and very strong brands,” James Lico, Fortive’s chief executive officer, said in a statement.

The deal is Fortive’s biggest so far as a standalone company, according to data compiled by Bloomberg.

The deal is expected to close in early 2019.