Listerine, Band-Aid and Johnson’s Babycare products will soon have a new home, as parent company Johnson & Johnson intends to split up into two public companies by shedding its consumer products segment.
Within the next two years the US-based healthcare giant will create a new company out of its household goods division, which includes Neutrogena and Aveeno, while holding on to its business selling drugs and medical devices.
J&J’s pharmaceutical arm is its biggest, generating US$45.6 billion in sales last year. Meanwhile, its consumer health segment produced US$14 billion.
Company leaders told analysts that the split, which will create another publicly traded company for the consumer health side, will make each business more nimble in adapting to their respective markets.
The new enterprise has yet to be named.
J&J was already undergoing a major transition with Alex Gorsky’s departure as CEO. He will remain on as executive chairman of the new J&J, the company said. “Under Alex’s leadership, Johnson & Johnson has both upheld the company’s 133-year legacy of delivering solutions to the world’s most urgent unmet healthcare needs and continued to redefine expectations when it comes to purpose-driven innovation and sustainable growth on behalf of all stakeholders,” states the J&J website.