Carlyle Group Readies Funds for Johnson & Johnson Deal

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At the Carlyle Group (NASDAQ:CG), the proverbial ball is beginning to roll on a recently proposed acquisition of Johnson & Johnson’s (NYSE:JNJ) ortho clinical diagnostics unit. Monday, source reported to Reuters that the private equity firm is preparing the $3.7 billion in financing it needs to underwrite its purchase of the company, which makes in vitro diagnostics products, blood screening equipment, and laboratory blood tests.

The Carlyle Group’s financing for the acquisition is composed of approximately $2.15 billion in loans, 1.15 billion in bonds, and between $300-400 million in revolving credit. The final offer price is expected to weigh in around the $4.1 billion to $4.5 billion range, according to Reuters; those numbers include equity and $3.3 billion in funded debt.

As previously reported, speculation arose in late December that the Carlyle Group was closing in on an agreement to acquire the ortho clinical diagnostics unit from Johnson & Johnson. It was then estimated that the deal could be worth as much as $4 billion; the Carlyle Group prevailed over rival bidders, including the Blackstone Group and Danaher Corp., to win exclusivity on the potential acquisition until January 17.

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