A HEALTHCARE research and manufacturing base in North Yorkshire which employs 300 people could soon be owned by a US-based private equity firm.
Ethicon, which is part of Johnson & Johnson, yesterday revealed it had received an offer from One Equity Partners to buy its professional wound care business for an undisclosed sum.
The professional wound care business, which has 800 staff, genera
ted annual net sales of around $270m in 2007. If the sale goes ahead, it will include a research, development and manufacturing base in Gargrave, near Skipton, North Yorkshire.
The 300 staff based in Gargrave would become employees of One Equity Partners, which manages $8bn of investments for JPMorgan Chase & Co in private equity transactions.
Under the terms of the deal, One Equity Partners would acquire the professional wound care portfolio, which include products that promote healing and control infection. The business also produces dressings, such as gauzes and swabs, which are used to clean, absorb and protect internal and external tissue.
Alex Gorsky, the company group chairman of Johnson & Johnson, said: "As we continually review our business priorities and seek to optimise our strategic options, we made the decision to explore the potential sale of the professional wound care business.
"We believe the offer from One Equity Partners shows a commitment to support the development of the business and offers exciting prospects for our employees, customers and patients."
Mark Kirkup, the operations director, advanced wound care operations, said: "Professional wound care is a successful and profitable business. It has a strong position in high growth markets."
An Ethicon spokesman added: "One Equity value the expertise of the employees in Gargrave and worldwide."
Dick Cashin, the New York-based managing partner of One Equity Partners, said demographic trends pointed to growth in the wound care market, and the professional wound care business offered a strong platform on which One Equity could build.
He added: "One Equity Partners is committed to providing the necessary resources to support the continued growth and expansion of the business."
In recent years, One Equity Partners has invested around $3.5bn to buy more than 30 companies in sectors including defence, chemicals, healthcare and manufacturing. One Equity Partners has staff in North America, Europe and Asia, with offices in New York, Chicago, Frankfurt and Hong Kong.
Ethicon has started a consultation process with works councils and trade unions. If the deal receives regulatory approval, it could be completed by late 2008.
The full article contains 413 words and appears in n/a newspaper.
