Bayer HealthCare said it has entered a definitive agreement to sell its Diabetes Care business with sales in 2014 of €909 million to Panasonic Healthcare Holdings for €1.02 billion.
Closing of the transaction is expected for the first quarter of 2016, subject to customary conditions, including antitrust clearance.
The sale includes Bayer's portfolio of blood glucose monitoring meters and strips, as well as lancing devices.
US private equity group KKR owns 80% of Panasonic Healthcare Holdings, Panasonic Corporation the remaining 20%.
"We are confident that the sale of our Diabetes Care business to our long-standing partner Panasonic Healthcare, with the strong backing of KKR, will support the long-term sustainability of this portfolio," said Werner Baumann, member of the Board of Management of Bayer AG and CEO of Bayer HealthCare.
KKR called the deal “another milestone” in its track record of partnering with leading German and Japanese corporates and in growing top health care companies.