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By Evelyn LeeUnder the terms of the agreement, the New Brunswick-based pharmaceuticals giant will commence a tender offer to purchase all outstanding shares of Mentor at $31 per share. The $1.12 billion estimated net value of the transaction is based on Mentor’s 34.6 million outstanding shares, plus estimated net debt at the time of closing. The boards of directors of Johnson & Johnson and Mentor have approved the transaction, which is expected to close during the first quarter of 2009.
The acquisition of Mentor will provide Ethicon with an opportunity to strengthen its presence in aesthetic and reconstructive medicine, according to Johnson & Johnson. The announcement comes a week after the health care products company said it would purchase Omrix, a New York-based biopharmaceutical company, for $438 million. In that deal, Omrix is expected to operate as a standalone entity that will also report through Ethicon, Johnson & Johnson says.
Shares of Johnson & Johnson traded at $56.99 and Mentor at $30.69 Monday morning.
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