Global healthcare products manufacturer Johnson & Johnson has said it will acquire global manufacturer of orthopaedic devices Synthes Inc for $21.3 billion in a cash and stock deal.

Both the companies have entered into a definitive agreement whereby Johnson & Johnson would acquire Synthes for CHF 159 per share or $21.3 billion, a company statement said today.

“Orthopaedics is a large and growing $37-billion global market and represents an important growth driver for Johnson & Johnson. Synthes is widely respected for its innovative, high quality products, R&D capabilities, its commitment to education, the highest standards of service and extensive global footprint,” the Johnson & Johnson Chairman and Chief Executive Officer, Mr Bill Weldon, said.

The transaction is expected to close during the first half of 2012.

“The combination presents a significant opportunity to jointly bring our products, services and educational offerings to the next level. Together, we will be a more attractive and exciting company for our employees and a more resourceful partner for our customers,” the Synthes President and CEO, Mr Michel Orsinger, said.

As per the agreement, each share of Synthes common stock would be exchanged for CHF 55.65 in cash and CHF 103.35 in Johnson & Johnson common stock, the statement added.

The transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, approval by the European Commission and regulatory approval in certain other jurisdictions, as well as other customary closing conditions.

Besides, the merger would require the approval of Synthes’ stockholders and will be effected by way of a statutory merger under Delaware law. Since Synthes is incorporated outside of Switzerland, Swiss regulations do not apply to the merger.

The transaction is expected not to impact J&J’s previously issued guidance, while for 2012, the transaction is likely to “modestly” reduce the earnings per share, the statement said.

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