Panasonic Healthcare to buy Bayer's diabetes business for Euro 1.02 bn

Bayer AG has entered into a definitive agreement to sell its diabetes care business to Panasonic Healthcare Holdings Co Ltd - a company which is backed by funds sponsored by leading global investment firm KKR and the Panasonic Corporation – for Euro 1.022 billion (JPY 138 billion). The sale will include the leading Contour portfolio of blood glucose monitoring meters and strips, as well as other products such as Breeze 2, Elite and Microlet lancing devices. Closing of the transaction is subject to customary conditions, including relevant antitrust clearance, and is expected to occur in the first quarter of 2016.
 
“We are confident that the sale of our diabetes care business to our long-standing partner Panasonic Healthcare, with the strong backing of KKR, will support the long-term sustainability of this portfolio,” said Werner Baumann, member of the Board of Management of Bayer AG and CEO of Bayer HealthCare.
 
Bayer’s diabetes care business is a technological leader in blood glucose monitoring systems, lancing devices and diabetes management software. The business accounted for Euro 909 million in sales in 2014, with Contour being the principal product portfolio.
 
“For more than 20 years, our companies have shared complementary goals. We anticipate that this partnership will take our two great businesses to new heights, and we wholly welcome the BDC team as full partners to Panasonic Healthcare,” said Kenji Yamane, president of Panasonic Healthcare and Panasonic Healthcare Holdings Co Ltd.