Johnson & Johnson Splitting Into Two Companies
Johnson & Johnson intends to split into two companies, separating its Consumer Health business and creating a new publicly traded company.
The move, which the company anticipates will take 18-24 months, seeks to better position J&J to deliver improved patient health outcomes, pursue more targeted business strategies and accelerate growth.
The company also expects the separation to improve management focus, resources, agility and speed, as well as focus capital allocation based on each company’s objectives.
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The new Johnson & Johnson Consumer Health company will include such brands as Neutrogena, Aveeno, Tylenol, Listerine, Johnson's and Band-Aid, with four $1 billion brands and 20 brands over $150 million.
Joaquin Duato is taking the CEO reins on Jan. 3 from Alex Gorsky as previously planned, and he would continue to lead the new Johnson & Johnson following the separation’s completion. Duato is currently vice chairman of J&J's executive committee.
Gorsky will continue to transition into his new executive chairman role, and a new board of directors and executive leadership will be determined and announced later.
"We believe that the new Johnson & Johnson and the new Consumer Health company would each be able to more effectively allocate resources to deliver for patients and consumers, drive growth and unlock significant value," said Duato in a statement. "Importantly, the new Johnson & Johnson and the new Consumer Health company would remain mission-driven companies with exceptional brands, commitments to innovation, and remarkable talent. Each company would carry on the Johnson & Johnson legacy of putting the needs and well-being of the people we serve first."
Johnson & Johnson is the No. 46 publicly owned consumer goods company on the CGT Top 100. The Consumer Health segment is expected to generate revenue of approximately $15 billion this year, J&J said, while the new Consumer Health company would sell in more than 100 countries following the separation.
