Fortive Acquires JNJ's ASP for $2.7B
The rumors have been out there for months that Johnson & Johnson was looking to offload Advanced Sterilization Products (ASP), and today, they went ahead and announced a deal to sell the company for Fortive Corporation for $2.7B.
As JNJ looks to streamline and restructure their medical device business, this deal should be welcome news to investors.
"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."
From Fortive's perspective, they are getting a company that generated $775 million in revenue during 2017.
James A. Lico, President and Chief Executive Officer of Fortive, stated: “We are excited about today’s announcement which demonstrates the continued evolution of our portfolio towards improving growth, increasing recurring revenue, and expanding positions in attractive markets. With ASP, we expect to acquire a global leader in medical sterilization and disinfection, with a large installed base and very strong brands. This acquisition is entirely consistent with our focus to help customers drive better safety, compliance and efficiency in critical workflows. We have conviction that the addition of ASP to our portfolio will create compelling value for both ASP and Fortive employees, our customers, and shareholders.”
Mr. Lico continued, “We are impressed by the strength of ASP’s innovative product portfolio and its customer relationships. ASP’s culture and commitment to quality and service lends itself to application of the Fortive Business System to drive both accelerated growth and operating synergies. We look forward to welcoming the ASP team to the Fortive family.”
Fortive ASP Acquisition Presentation
Both companies expect that the deal closes no later than early 2019.