Johnson & Johnson has asked Cravath Swaine & Moore and Baker McKenzie partners for advice on the upcoming split into two public companies.
Cravath and Baker McKenzie have named multiple M&A, tax, intellectual property and executive compensation partners to lead the spin-off, according to both firms.
Johnson & Johnson will spin off its consumer products business from its drug and medical device business in the next 18 to 24 months, Commpay said on Friday, citing growth, agility and consumer needs.
J&J announced its intended split just days after General Electric Co. announced its own split into three separate businesses. GE has acquired Paul, Weiss, Rifkind, Whaton & Garrison and Gibson, Dunn & Crutcher for its spin-offs.
Cravath’s team leaders are M&A partners Robert Townsend III, George Schoen and Jenny Hochenberg; C -ital market partner Michael Mariani; tax partner J. Leonard Teti II; Executive Compensation and Benefits Partners Jonathan Katz and Matthew Bobby; and IP partner David K -pos.
Baker McKenzie, who has been advising J&J for more than 30 years, has -pointed tax partner Maria Eberle and transaction partner Alan Zoccolillo Jr. to lead his team.
The Baker McKenzie team also includes transaction attorneys Claudia Poernig, Irina Shestakova and Federico Cuadra del Carmen; Work and Compensation Partner Susan Eandi; Regulatory partners Graham Stuart and Khelin Aiken; and IP and technology partner Lisa Rosaya.
While J & J’s drug and medical device divisions account for around 88% of the company’s total sales, the smaller consumer goods division includes household brands such as Tylenol, Motrin, Band-Aid, Listerine, and Clean & Clear. In 2020, the company’s profit reached nearly $ 15 billion.
J & J’s successful Covid-19 vaccine, made with Janssen Pharmaceutical Co., hasn’t completely overshadowed the tens of thousands of ongoing lawsuits claiming that its baby powder caused ovarian cancer. According to Bloomberg Intelligence analyst Holly Fromm, J&J threatens a settlement loss of up to 7.5 billion US dollars. CFO Joseph Wolk told Bloomberg News that the lawsuits have nothing to do with the proposed spin-off.
Goldman Sachs & Co. and JP Morgan Securities LLC are serving as financial advisor to J&J, according to a corporate statement.