
Johnson & Johnson (NYSE:JNJ) tapped JPMorgan Chase & Co. to shop its Ortho Clinical Diagnostics blood testing business to potential buyers, which could reportedly include Abbott (NYSE:ABT), GE (NYSE:GE) and Danaher (NYSE:DHR).
Johnson & Johnson will also look to interest private equity buyers in the unit, which threw off between $400 million and $500 million in earnings before interest and other charges, according to Reuters, citing "3 people familiar with the matter." Ortho Clinical Diagnostics posts annual sales of about $2 billion.
Earlier this year the New Brunswick, N.J.-based healthcare conglomerate said it planned to seek "strategic alternatives" for the OCD unit, according to the news service, usually a signal that a business could come up for sale.
The OCD operation could "be a good fit" for Abbott’s diagnostics division, which pulled down about $2.2 billion during the 1st half of the year, Crain’s Chicago Business reported.
Measured by revenues, Ortho Clinical Diagnostics ranks 5th in the clinical diagnostics market, which is led by Roche (PINK:RHHBY).