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Monday, December 01, 2008

J&J to Buy Breast-Implant Maker for $1.1B

Matt Egan

FOXBusiness

Johnson & Johnson (JNJ) unveiled a $1.07 billion cash offer to buy breast-implant maker Mentor (MNT) in a deal that places nearly a 100% premium on the aesthetic medical products supplier.

The deal, which has already been approved by the boards of directors of the two companies, would give Mentor shareholders $31 a share. Shares of the Santa Barbara, Calif.-based company closed at $16.15 a share on Friday but had been as high as $40.82 earlier in the year.

"The addition of Mentor, a market-leader and one of the most respected companies in the aesthetic space, expands our capacity to provide physicians with products that can restore patients' appearance, self-esteem and quality of life,” said Alex Gorsky, a J&J group chairman.

J&J, which is a component of the Dow, said it sees Mentor operating as a standalone business that will report through its Ethicon unit.

"Ethicon and Mentor share a common set of values in terms of commercial market leadership, the commitment to developing innovative, science based products, and unwavering service to physicians and patients. This transaction allows Mentor to expand our product portfolio and significantly grow our global reach,” said Mentor CEO Josh Levine.

J&J said it sees the transaction closing during the first quarter of next year and hurting 2009 earnings per share by about 3 cents to 5 cents per share.

Just a week ago J&J unveiled a $438 million offer to buy Omrix Biopharmaceuticals (OMRI).