|
Johnson & Johnson to buy synthes for $21.6 B
J & J is to buy Swiss medical devices makers synthes Inc. for 19 billion Swiss
Francs ($21.6 Billion) in its largest ever buy boosting its orthopedic business.
J & J’s offer is the premium of 8.5 % over synthes’ closing share price on
Tuesday. The acquisition which is likely to close in the first half of 2012 has
the backing of both the synthes and J & J boards. The deal had been anticipated
after synthes said on April 18 it was in talks with J & J synthes, which posted
cells of $3.7 Billion in 2010 makes nails screws and plates to fix broken bones
as well as artificial spine disc.
“Orthopedic is a large and growing $37 billion global market and represents an
important growth driver for J & J” said Bill Weldon, J & J chairman and chief
executive.
“The premium reflects the challenges to hand over synthes to a new owner who
needs to fully respect the synthes culture and tight relationship to the AO
foundation. This element will limit the chances of the new owner to influence
the business and exploit synergies.” Hansjoerg Wyss said..
Counter bid unlikely:
Under the deal, each share of synthes common stock exchanged would be converted
into 55.65 francs in each, plus more than 1.9672 and fewer than 1.7098 shares of
the J & J common stock.
The medical device sector has been consolidating as companies seek economics of
scale and new business areas but analysis doubt anyone will want to take on J &
J with the counter bid for synthes.
Once the deal is completed synthes and DePuy companies of J & J will together
make up the largest business within the medical devices and diagnostic units of
J & J.
Ref : Economic Times 28th April, 2011 |
