J&J to sell slow-growing diagnostics unit to Carlyle

(Reuters) – Johnson & Johnson said it would sell its ortho clinical diagnostics unit to private equity firm Carlyle Group for $4.15 billion, shedding a slow-growing business to focus on more lucrative products. The deal is Carlyle's biggest healthcare investment since it bought nursing, hospice and home health services provider Manor Care Inc in 2007. "Now with this divestiture nearly complete, we're inclined to believe (J&J) will continue to strategically prune its business segments and use the proceeds to return cash to shareholders or invest in higher-growth assets," Leerink analyst Danielle Antalffy wrote in a note. J&J's diabetes business, which includes LifeScan blood glucose meters and Animas pumps, could be the next business to go, given slowing sales growth and weak margins, Antalffy said.