Pending regulatory approval, Bayer AG will sell its diabetic care business to Panasonic Healthcare Holdings Co. Ltd. for $1.1 billion. Closing of the sale is scheduled for the first quarter of 2016.
Under terms of the agreement, Panasonic Healthcare—which is backed by funds from the global investment firm KKR and the Panasonic Corporation—will acquire Bayer’s Contour portfolio of blood glucose monitoring meters and strips as well as its Breeze 2, Elite and Microlet lancing devices and its diabetes management software.
“For more than 20 years, our companies have shared complementary goals,” said Kenji Yamane, president of Panasonic Healthcare and Panasonic Healthcare Holdings Co. Ltd, in a press release. “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.”
Johannes Huth, member and head of KKR Europe, Africa and Middle East, and Hiro Hirano, member and CEO of KKR Japan, added: “This is another milestone in KKR's track record of partnering with leading German and Japanese corporates and in growing top health care companies. Together, we will leverage our experience and network to create a global diabetes care solutions powerhouse in an effort to make this a transformational transaction for the diabetes care industry.”