Bayer is shedding its diabetes care division via a deal with long-term partner Panasonic Healthcare Holdings worth 1.02 billion euros.

The sale includes blood glucose monitoring systems, including the popular Contour portfolio of testers and strips, as well as lancing devices for patients with diabetes, which helped the unit bring in sales of 909 million euros last year.

The move seems a good fit for Panasonic. "For more than 20 years, our companies have shared complementary goals. We anticipate that this partnership will take our two great businesses to new heights,” said Kenji Yamane, President of Panasonic Healthcare Holdings, which is owned by investment group KKR (80%) and Panasonic Corp (20%). 

For Bayer, the transaction comes under its current strategy of honing its focus on life-sciences, which will also see it de-merge and float on the stock market its MaterialScience unit by mid-2016.

The deal with Panasonic, which remains subject to customary conditions, including relevant antitrust clearance, is expected to close in the first quarter of next year.