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The Carlyle Group Agrees to Acquire Johnson & Johnson's Ortho-Clinical Diagnostics for $4.15 Billion

CG

Global alternative asset manager The Carlyle Group (NASDAQ:CG) has agreed to acquire Johnson & Johnson’s Ortho-Clinical Diagnostics (OCD) business, a global provider of solutions for screening, diagnosing, monitoring and confirming diseases, for $4.15 billion. The transaction is subject to customary regulatory approvals and is expected to close in the middle of 2014.

Stephen H. Wise, Managing Director of The Carlyle Group, said, “Ortho-Clinical Diagnostics is an established global brand with a reputation for quality and innovation. Through accelerated investment in research and product development and continued expansion into both emerging and established markets, we expect to tap into rising demand for sophisticated medical diagnostic products and services worldwide. We have been focused on the diagnostics industry for many years given its attractive growth prospects, driven by the crucial role it plays in health care decision-making and influencing patient outcomes. We believe that OCD, with its world class employee base and talented management team, is poised for the next level of success.”

Eric Compton, Worldwide President, Ortho-Clinical Diagnostics, said, “We are excited to work with Carlyle and believe OCD will be well-positioned as an independent company focused exclusively on the in vitro diagnostics market. In combination with Carlyle’s global reach and deep experience in the healthcare sector, OCD will have the opportunity to invest in new, innovative products and services for its customers and provide an environment for its professionals to excel in a competitive global marketplace.”

Headquartered in Raritan, NJ, with manufacturing operations in Rochester, NY, Pompano Beach, FL and Pencoed, Wales, OCD operates in 130 countries. OCD serves clinical laboratories and the transfusion medicine community around the world. The company is a provider of total solutions for early screening, diagnosing, monitoring and confirming diseases, focused on supporting hospitals, laboratories and blood centers worldwide.

Equity for the transaction comes from Carlyle Partners VI, a $13 billion U.S. Buyout fund, which completed fundraising in November 2013 with two hundred sixty-nine investors from 43 countries.

Since inception, Carlyle has invested $6.3 billion of equity in healthcare transactions around the globe. Current and former investments include: Pharmaceutical Product Development (PPD), Grupo Qualicorp, Healthscope Limited, HCR ManorCare and MultiPlan.

Barclays and Goldman Sachs are acting as financial advisors to The Carlyle Group, which has secured committed debt financing from Barclays, Goldman Sachs, Credit Suisse, UBS and Nomura. Latham & Watkins LLP is acting as legal advisor to The Carlyle Group.

About Ortho-Clinical Diagnostics, Inc.

Ortho-Clinical Diagnostics, Inc. delivers the high-quality in vitro diagnostic products that give healthcare professionals around the world the knowledge they need to make better treatment decisions sooner. The company serves the global transfusion medicine community with donor screening and blood typing products to help ensure every patient receives blood that is safe, the right type and the right unit. Ortho-Clinical Diagnostics also brings sophisticated information management, testing technologies and automation and interpretation tools to clinical laboratories worldwide to help them run more efficiently and improve patient care. For more information, visit www.orthoclinical.com

About The Carlyle Group

The Carlyle Group (NASDAQ:CG) is a global alternative asset manager with $185 billion of assets under management across 122 funds and 81 fund of funds vehicles as of September 30, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,450 people in 34 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary/481



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