Fortive offers $2.8B for J&J’s sterilization products unit

Fortive Corp., an industrial conglomerate based in Washington state, has made a binding offer to purchase the Advanced Sterilization Products business from Johnson & Johnson’s Ethicon Inc. unit.

New Brunswick-based J&J said in a news release that a deal would be worth about $2.8 billion, including $2.7 billion in cash and $100 million in net receivables. The infection prevention solutions company had 2017 net revenue of about $775 million.

“As we balance the interests of all our stakeholders to deliver the greatest value to customers, health care providers and shareholders, we must continuously assess strategic fit and explore alternatives for our businesses,” Shlomi Nachman, J&J’s company group chairman, Interventional Solutions and Specialty Surgery, said in a prepared statement. “ASP has a long history of pioneering infection prevention technology, and we are confident that Fortive would be well-positioned to continue to drive the business toward achieving its full potential.”

J&J has 120 days from the date of the offer to accept it; the transaction would be expected to close no later than early 2019, pending customary conditions and approvals.

Ethicon, like J&J, is based in New Jersey, making its headquarters in Somerville.