By Michelle Sierra
NEW YORK Jan 13 Private equity firm Carlyle
Group LP is readying a $3.7 billion financing that will back its
purchase of Johnson & Johnson Inc's ortho clinical diagnostics
unit, sources told Thomson Reuters LPC.
The acquisition deal is expected to be signed by the end of
this week, though the signing could be delayed as discussions
The financing includes $2.15 billion in term loans and $1.15
billion in bonds. Rounding out the deal is a $300-400 million
Including equity and $3.3 billion in funded debt, the offer
price is expected to be in the $4.1 billion to $4.5 billion
range, according to sources.
Barclays and Goldman Sachs are leading the deal. Both banks
are also advising in the transaction.
Barclays, Goldman Sachs and Carlyle Group representatives
declined to comment. Representatives from J&J were unable to
provide comment by press time.
In late December, Reuters reported that Carlyle was nearing
an agreement to acquire Johnson & Johnson's ortho clinical
diagnostics unit in a deal expected to be worth around $4
billion, citing sources familiar with the matter. Also according
to Reuters, Carlyle's exclusivity period on the deal ends
Carlyle prevailed over a rival bid from Blackstone Group LP
in partnership with healthcare and industrial conglomerate
J&J's ortho clinical diagnostics unit makes blood-screening
equipment and laboratory blood tests. It also makes tests that
can identify a patient's blood type and screen for viruses such
as HIV and hepatitis C.
Johnson & Johnson said at the beginning of the year it would
explore strategic alternatives for the unit and said the process
could take from 12-24 months. It asked JPMorgan Chase & Co is
advising on the sale of the unit.