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Panasonic Healthcare to acquire Bayer Diabetes
Panasonic Healthcare Holdings (PHCHD) has entered an agreement with Bayer AG under which PHCHD and Bayer Diabetes Care (BDC) will partner to create a global diabetes care solutions business.
BDC is a provider of blood glucose monitoring systems to people with diabetes and healthcare professionals. It was formed as a business unit within Bayer and generated sales of EUR 909 million in 2014. PHCHD – which has been backed with funds sponsored by investment firm KKR since 2014 – develops and manufactures blood glucose monitoring meters and strips for people with diabetes through the In Vitro Diagnostics business of its subsidiary Panasonic Healthcare Co., Ltd. ("PHC"). BDC has marketed and sold PHC products for more than two decades and has been PHC's exclusive sales and distribution partner for the ContourTM Next products, as well as some ContourTM products. Kenji Yamane, President of PHCHD said, "Since first taking steps to becoming an independent healthcare company from Panasonic Corporation through KKR's investment, it has been our key management objective to form strong partnerships with strategically pivotal companies. For more than 20 years, BDC has been our flagship partnership with whom we share complementary goals. Now, with KKR's support, we are pleased to have reached this landmark agreement with BDC. 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." "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," said Werner Baumann, member of the Board of Management of Bayer AG and CEO of Bayer HealthCare. Under the terms of the agreement, PHCHD will acquire BDC for EUR 1.022 million.The company expects to close the transaction in the first quarter of 2016.