Johnson & Johnson has launched a sale process for its Ortho Clinical Diagnostics unit, which makes blood screening equipment and laboratory blood tests and could fetch around $5 billion, three people familiar with the matter said on Friday.J&J has asked JPMorgan Chase & Co to run the sale and is preparing to send detailed financial information in coming weeks to potential buyers, including some of the world's largest private equity firms and a number of healthcare companies, the people said.Early estimates suggest the unit's earnings before interest, tax, depreciation and amortization are between $400 million and $500 million, suggesting a possible valuation of roughly $5 billion, the people said.The unit, whose tests are considered older and less profitable than modern molecular diagnostics that examine gene mutations for signs of disease, has annual sales of about $2 billion.
Johnson & Johnson is a holding company. The Company is engaged in the research and development, manufacture and sale of a broad range of products in the health care field. Shares of JNJ traded higher by 0.14% or $0.12/share to $87.16. In the past year, the shares have traded as low as $67.52 and as high as $94.42. On average, 9465860 shares of JNJ exchange hands on a given day and today's volume is recorded at 10038552.
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. Shares of JPM traded higher by 0.86% or $0.45/share to $52.56. In the past year, the shares have traded as low as $38.73 and as high as $56.93. On average, 18392000 shares of JPM exchange hands on a given day and today's volume is recorded at 22343320.
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