Bayer is selling its diabetes care business to Panasonic Healthcare Holdings in a deal worth 1.02 billion euros.
The sale to the Japanese group, which is owned by investment group KKR (80%) and Panasonic Corp (20%), will include Bayer’s Contour portfolio of blood glucose monitoring meters and strips, as well as other products such as diabetes lancing devices. Closing of the deal, which is subject to customary conditions such as antitrust clearance, is expected to occur in the first quarter of 2016.
The companies have been collaborating for over 20 years and Panasonic Healthcare chief Kenji Yamane said “we anticipate that this partnership will take our two great businesses to new heights”. The diabetes care unit had sales of 909 million euros in 2014.
The sale is part of Bayer’s restructuring, which includes plans to spin off its material science unit, which will be called Covestro, before the middle of next year.