Carlyle Is Said to Hire Banks for Ortho Clinical Diagnostics IPO

  • Buyout firm working with Barclays, Goldman Sachs, JPMorgan
  • IPO could value Ortho Clinical at $7 billion including debt

Carlyle Group LP, one of the world’s largest private equity investors, has hired banks for an initial public offering of Ortho Clinical Diagnostics Inc., according to people with knowledge of the matter.

Washington-based Carlyle is working with Goldman Sachs Group Inc., Barclays Plc and JPMorgan Chase & Co. on the planned listing, which could value Ortho Clinical at as much as $7 billion including debt, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The firm, which considered a sale of Ortho Clinical after receiving interest from potential suitors, decided instead to pursue an IPO as it’s likely to fetch a higher valuation, the people said.

Representatives for Carlyle, Goldman Sachs, JPMorgan and Ortho Clinic declined to comment. A spokesman for Barclays didn’t respond to a request for comment.

An IPO of Ortho Clinical, which could come as soon as the first quarter of 2018, would represent a successful turnaround effort by owner Carlyle. After the buyout firm acquired the company from Johnson & Johnson for $4 billion in 2014, Ortho Clinical missed its earnings forecast and changed its chief financial officer, sending the price of its debt plunging.

Ortho Clinical, based in Raritan, New Jersey, provides donor screening and blood-typing diagnostic products to clinical laboratories and hospital groups, according to its website.

David Rubenstein, co-founder of Carlyle, is the host of the Bloomberg television and digital series, “The David Rubenstein Show: Peer-to-Peer Conversations.”

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