J&J to sell sterilization unit to Fortive for $2.7 billion

(Reuters) - U.S. drug maker Johnson & Johnson said on Wednesday it received a binding cash offer of about $2.7 billion for its sterilization products business from Fortive Corp .

J&J's advanced sterilization products (ASP) business, part of its Ethicon Inc unit, generated revenue of about $775 million in 2017.

Fortive, a maker of industrial products, plans to finance the acquisition through debt or equity and with available cash and said it expected the acquisition to add to adjusted earnings in the first full year after the transaction.

Everett, Washington-based Fortive was spun-off in 2016 from Danaher Corp , which develops technology for dental, life sciences and diagnostics industries.

 

(Reporting by Tamara Mathias in Bengaluru; Editing by Anil D'Silva)