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Thursday, January 16, 2014

J&J to sell slow-growing diagnostics unit to Carlyle, (NYSE: JNJ)

Johnson & Johnson said it would sell its ortho clinical diagnostics unit to private equity firm Carlyle Group for $4.15 billion, shedding a slow-growing business to focus on more lucrative products.The deal is Carlyle's biggest healthcare investment since it bought nursing, hospice and home health services provider Manor Care Inc in 2007."Now with this divestiture nearly complete, we're inclined to believe (J&J) will continue to strategically prune its business segments and use the proceeds to return cash to shareholders or invest in higher-growth assets," Leerink analyst Danielle Antalffy wrote in a note.J&J's diabetes business, which includes LifeScan blood glucose meters and Animas pumps, could be the next business to go, given slowing sales growth and weak margins, Antalffy said.

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 0.26% or $0.245/share to $95.04. In the past year, the shares have traded as low as $72.37 and as high as $95.99. On average, 7100000 shares of JNJ exchange hands on a given day and today's volume is recorded at 1017647.