Bayer AG selling Diabetes Care to Panasonic for £720 million

Panasonic Healthcare Holdings Co., Ltd., has entered into a definitive agreement to buy the Diabetes Care business of Bayer AG.

Panasonic Healthcare is a company backed by funds from investment firm, KKR and the Panasonic Corporation. The total consideration for the transaction is £720 million.

Werner Baumann, member of the board of management of Bayer AG and CEO of Bayer HealthCare, said: "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."

Kenji Yamane, president of Panasonic Healthcare and Panasonic Healthcare Holdings Co., Ltd, said: "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."

Johannes Huth, member and head of KKR Europe, Africa and Middle East, and Hiro Hirano, Member and CEO of KKR Japan, said: "We are pleased that Bayer Diabetes Care chose Panasonic Healthcare and KKR as the trusted partners for bringing the business to its next stage of development. 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."

Bayer’s Diabetes Care is a technological business for blood glucose monitoring systems, lancing devices and diabetes management software. The business accounted for £653 million in sales in 2014, with Contour being the principal product portfolio.

The sale will include, the Contour portfolio of blood glucose monitoring meters and strips, as well as Breeze2, 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.