Johnson & Johnson (NYSE: JNJ) subsidiary Ethicon last week sold its advanced sterilization products (ASP) business to Fortive Corporation (NYSE: FTV) for $2.7 billion.
The ASP business is a global provider of innovative sterilization and disinfection solutions. It generated adjusted EBITDA margin of approximately 25% (unaudited) in 2017.
Fortive is a diversified industrial growth company comprised of professional instrumentation and industrial technologies businesses. Fortive’s brands generated revenue of $6.7 billion in 2017.
ASP’s products include the STERRAD system for sterilizing instruments and the EVOTECH and ENDOCLENS system for endoscope reprocessing and cleaning. STERRAD systems with ALLClear Technology and the VELOCITY Biological Indicator Readers are fully-integrated and network-connected and minimize the need for manual documentation of vital sterilization information in hospitals.
Fortive expects the transaction to be accretive to adjusted net earnings in the first full year. The company plans to finance the acquisition with available cash and proceeds from issuance of debt and/or equity.