Bayer HealthCare to sell diabetes care business to Panasonic

Bayer HealthCare has announced the sale of its diabetes care business to Panasonic in a deal worth 1.02 billion euros (741.18 million pounds).

Panasonic Healthcare Holdings, a company backed by funds sponsored by leading global investment firm KKR and Panasonic, will purchase the business, with the deal expected to close in the first quarter of 2016.

The sale will include the leading Contour portfolio of blood glucose monitoring meters and strips, as well as other products such as the Breeze 2, Elite and Microlet lancing devices.

During 2014, the Bayer Diabetes Care business generated sales of 909 million euros, with the Contour portfolio being the leading driver of revenue.

Werner Baumann, member of the board of management of Bayer and chief executive officer of Bayer HealthCare, said: "We are confident that the sale of our diabetes care business to our longstanding partner Panasonic Healthcare, with the strong backing of KKR, will support the long-term sustainability of this portfolio."

Panasonic Healthcare Holdings was established in 2014 and is currently seeking new ways to strengthen its core in vitro diagnostics business.