German pharmaceutical company Bayer has signed a €1bn deal to sell its Diabetes Care business to Panasonic Healthcare. This business is supported by private equity giant KKR in addition to the Panasonic Corporation.

The diabetes care business manufactures products such as the Contour blood glucose monitoring meters and strips. Last year, it generated €909m in sales, led by Contour. The two companies are looking forward to close the deal in the first quarter of next year; it depends on competition clearance from the related authorities.

According to the companies, many healthcare providers have established price reduction programs for diabetes care products. The companies added, “This has contributed to an increase in the volume of diabetes care products in the market at lower prices. To navigate the environment, together (the companies) look forward to scaling their capabilities to continue providing top quality and cost-competitive products to patients in need”.

According to Werner Baumann, chief executive of Bayer HealthCare, the sale of their Diabetes Care business to their partner Panasonic Healthcare is expected to support the long-term sustainability of this portfolio.

According to Kenji Yamane, president of Panasonic Healthcare, their companies have shared complementary targets. He added that the partnership will help develop their two businesses. He said that they welcome the BDC team to Panasonic Healthcare.