Johnson & Johnson was unable to find a buyer for the company it bought in 2006.
Johnson & Johnson (NYSE: JNJ) yesterday closed down ColBar, an Israeli start-up that it acquired in late 2006 for $159 million. The remaining employees were let go. Johnson & Johnson tried to sell the company for $20-40 million in recent months, and was apparently willing to settle for even less, but to no avail. Efforts are still underway to sell ColBar's facilities, in which tens of millions of dollars were invested.
ColBar developed a method for using plant collagen for aesthetic wrinkle removal. At its peak, the company had scores of employees in Israel. The closure was probably due to a mix of marketing and operational problems. The product achieved only $25 million in sales a year, after encountering increasing competition from other aesthetic products.
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2009
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