Johnson & Johnson to buy Synthes for $21.3 billion
Johnson & Johnson Inc. announced Wednesday that it plans to buy Swiss medical-device maker Synthes Inc. for $21.3 billion in order to expand its expanding orthopedic-device sector. Reports from the past weeks suggested the company would buy Synthes for about $20 billion. The final price of the deal won’t be determined until 10 days before closing, which will include cash and stock options. Analysts believe the deal may not happen for at least a year.
Under the terms of the deal, Synthes shareholders would receive 55.65 Swiss francs in cash and 103.35 in Johnson & Johnson common stock for each share. Johnson & Johnson already operate several orthopedic-device businesses under the brand DePuy. Once the deal closes, DePuy and Synthes will make for the largest segment of the company’s medical device division.
“Orthopedics 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, world-class R&D capabilities, its commitment to education, the highest standards of service, and extensive global footprint,” said William Weldon, Johnson & Johnson chief executive.
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