Bayer Sells Diabetes Care Unit to Panasonic for US$1.13 Bn
Published By : 11 Jun 2015 | Published By : QYRESEARCH
Japan based Panasonic Healthcare Holdings Co. Ltd will be purchasing the diabetes care unit belonging to German pharmaceutical group Bayer AG. The US$ 1.13 billion deal was announced on Wednesday.
The deal between Bayer and Panasonic Healthcare is anticipated to be finalized in the first quarter of next year, Bayer announced. Panasonic Healthcare is a joint venture consisting of KKR & Co. L.P., a private equity firm based in the United States, and Japanese multinational electronics giant Panasonic Corporation.
Analysts as well as investors have been expecting Bayer to sell of its diabetes care business for a long time now. This unit produces medical devices that are used to monitor blood glucose levels.
Werner Baumann, the newly appointed chief of the health care division at Bayer, said that the multibillion dollar deal should complement the long term sustainability of the company’s portfolio.
This sell-off is a part of a much bigger plan by chief executive of Bayer Marijn Dekkers of selling off noncore assets. The aim is to focus on the company’s crop science business and its over the counter and prescription drugs business.
Bayer in October completed the acquisition of the OTC business belonging to U.S. Merck & Co., amounting to US$ 14.2 billion. This acquisition allowed the company a range of new products as well as greater access to the market in the United States. Last September, Bayer also announced its decision to sell of its high tech plastics division by way of an initial public offering. The company said that it plans to float that plan by the mid of next year at the latest.