Johnson & Johnson’s Tasmanian Alkaloids poppy processing business will be sold to private equity firm SK Capital Partners.
Bloomberg reports that a purchase agreement has been signed and the sale is expected to be complete in June.
Johnson & Johnson announced last year that it was considering selling Noramco, a pharmaceuticals active ingredient manufacturing business, and with it Tasmanian Alkaloids.
ABC Rural reports Poppy Growers Tasmania’s CEO Keith Rice as saying he expects it to be business as usual.
"[SK Capital’s] portfolio of companies generates revenues of over $8 billion annually, and it employs 9,000 people,” said Rice.
"We understand that representatives of the company will be out here in the not too distant future, and naturally, we will be looking forward to meeting with them and seeing what their plans are for the future of the industry in Tasmania."