Private equity firm Platinum Equity’s US$2.1bn offer to acquire blood glucose monitoring systems maker LifeScan, Inc from US health care products company Johnson & Johnson is backed by US$1.875bn of loans, according to two sources familiar with the matter.

J&J has been evaluating strategic options for the troubled unit, as well as its other diabetes care businesses, which include insulin pumps maker Animas Corp and wearable insulin pumps maker Calibra Medical Inc, since January 2017 amid falling sales. The company last October announced it would close down Animas after failing to find a buyer.

Bank of America Merrill Lynch is providing the entire debt commitment to Platinum Equity initially but will carve out a portion to other banks, the sources said. The carveout could be as high as 60%, one of the sources said.

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