Johnson & Johnson has tapped Cravath Swaine & Moore and Baker McKenzie partners for advice on its upcoming split into two public companies.
Cravath and Baker McKenzie have named multiple partners across their M&A, tax, intellectual property, and executive compensation practices to lead the spinoff effort, according to both firms’ statements.
Johnson & Johnson will spin off its consumer products division from its drug and medical device businesses in the next 18 to 24 months, the commpay said Friday, citing growth, agility, and consumer needs.
J&J announced its intended breakup just days after General Electric Co. publicized its own split into three separate businesses. GE has retained Paul, Weiss, Rifkind, Whaton & Garrison and Gibson, Dunn & Crutcher for its spinoffs.
Cravath’s team leaders are M&A partners Robert Townsend III, George Schoen, and Jenny Hochenberg; capital markets partner Michael Mariani; tax partner J. Leonard Teti II; executive compensation and benefits partners Jonathan Katz and Matthew Bobby; and IP partner David Kappos.
Baker McKenzie, which has advised J&J for more than 30 years, has tapped tax partner Maria Eberle and transactions partner Alan Zoccolillo Jr. to lead its team.
Baker McKenzie’s team also includes transactional lawyers Claudia Poernig, Irina Shestakova, and Federico Cuadra del Carmen; employment 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 comprise around 88% of the company’s total revenue, its smaller consumer products branch includes staple household brands like Tylenol, Motrin, Band-Aid, Listerine, and Clean & Clear. In 2020, the company’s profits reached nearly $15 billion.
J&J’s successful Covid-19 vaccine, produced with Janssen Pharmaceutical Co., hasn’t completely overshadowed the tens of thousands of ongoing lawsuits alleging its baby powder caused ovarian cancer. J&J faces up to $7.5 billion in settlement losses, according to Bloomberg Intelligence analyst Holly Froum. Chief financial officer Joseph Wolk told Bloomberg News that the lawsuits are unrelated to the planned spinoff.
Goldman Sachs & Co. and JP Morgan Securities LLC are acting as J&J’s financial advisers, according to a company statement.