About Careers Internship MedBlog Contact us
Medindia LOGIN REGISTER
Advertisement

Johnson & Johnson Acquires Synthes

by Sheela Philomena on April 28, 2011 at 10:40 AM
Font : A-A+

 Johnson & Johnson Acquires Synthes

Johnson & Johnson announced a 21.3 billion pounds takeover of Synthes, a US-Swiss medical technology, one of the biggest merger deals so far this year.

The two companies "announced that they have entered into a definitive agreement whereby Johnson & Johnson will acquire Synthes for 159 Swiss francs per share, or $21.3 billion," (15.7 billion euros) they said in a joint statement released on Synthes's website.

Advertisement

The cash and share transaction is expected to close during the first half of 2012, the companies added.

Although the deal has been approved by the boards of Synthes and Johnson & Johnson, it is still subject to approval by shareholders as well as regulatory authorities in the United States and European Union.
Advertisement

The transaction would boost the US giant's medical equipment business, which made up 40 percent of its 2010 revenues.

Synthes, the product of the merger in 1999 of US and Swiss firms, specialises in instruments, implants and biomaterials for use in orthopaedic surgery. It would be grafted on to Johnson's own orthopaedic specialist, DePuy.

"DePuy and Synthes together will create the most innovative and comprehensive orthopaedics business in the world," said Bill Weldon, chairman and chief executive of Johnson.

"Orthopaedics is a large and growing $37 billion global market and represents an important growth driver for Johnson & Johnson," he added.

The deal ranks alongside US group Duke Energy's $25 billion proposed takeover of rival Progress Energy announced this year and behind telecommunications giant AT&T's proposed $39 billion acquisition of US operations of Germany's T-Mobile.

The deal would also bring a huge windfall for Synthes chairman Hansjoerg Wyss, who owns about 40 percent of the company.

Forbes magazine rated the 76-year-old's fortune at $6.4 billion in March, ranking him at 154th on its global rich list.

Analysts at Zuercher Kantonalbank (ZKB) expressed surprise at the deal, noting that Wyss had been reluctant to let go until now.

"The price is towards the lower end of the range," they said in a note to investors.

Synthes's share price jumped 3.6 percent when trading opened on the Swiss exchange but later eased to 146.60 Swiss francs in afternoon trading, an increase of 0.1 percent (1414 GMT).

As trading opened on the New York Stock Exchange, Johnson's share price dropped 2.06 percent.

Johnson makes products ranging from baby and skin care items to bandages, over the counter and prescription medicines, as well as medical devices.

Source: AFP
Advertisement

Advertisement
News A-Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
What's New on Medindia
Alarming Cesarean Section Trends in India - Convenience or Compulsion of Corporate Healthcare
Quiz on Low-Calorie Diet for Diabetes
World Heart Day in 2022- Use Heart for Every Heart
View all
News Archive
Date
Category
Advertisement
News Category

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

Most Popular on Medindia

Turmeric Powder - Health Benefits, Uses & Side Effects Hearing Loss Calculator Iron Intake Calculator Selfie Addiction Calculator Sinopril (2mg) (Lacidipine) Sanatogen Vent Forte (Theophylline) Post-Nasal Drip Blood Donation - Recipients Noscaphene (Noscapine)
This site uses cookies to deliver our services. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use
×

Johnson & Johnson Acquires Synthes Personalised Printable Document (PDF)

Please complete this form and we'll send you a personalised information that is requested

You may use this for your own reference or forward it to your friends.

Please use the information prudently. If you are not a medical doctor please remember to consult your healthcare provider as this information is not a substitute for professional advice.

Name *

Email Address *

Country *

Areas of Interests