J & J can buy a lot of smaller companies for 20+ billion. If it decides not to pursue Guidant. They look to be starting!
Johnson & Johnson to Acquire Animas
Friday December 16, 9:30 am ET
Johnson & Johnson to Acquire Animas for About $518M to Capitalize on Diabetes Treatment Demand
NEW YORK (AP) -- Health products maker Johnson & Johnson said Friday it has agreed to acquire Animas Corp., an insulin delivery company, for about $518 million to capitalize on the growing demand for diabetes treatment.
The acquisition will give Johnson & Johnson immediate entry in the fast-growing insulin delivery pump market, the company said.
J&J, which is based in New Brunswick, N.J., said it would pay $24.50 for each Animas share, a 35 percent premium to Animas' Thursday closing stock price on the Nasdaq. Shares of Animas jumped $5.85, or 32 percent, to $24.05 before the start of regular trading Friday.
The boards of both J&J and Animas have approved the deal, which is expected to close in next year's first quarter, pending approval from antitrust regulators and Animas shareholders.
Once the acquisition closes, Animas, based in West Chester, Pa., will operate as a stand-alone entity under LifeScan Inc., a J&J subsidiary that sells blood glucose monitoring systems.
The deal comes as Johnson & Johnson and Boston Scientific are each trying to buy medical device maker Guidant Corp.
Boston Scientific announced this month it would offer $25 billion for Guidant after J&J lowered its initial $25.4 billion bid to $21.5 billion following months of recalls of Guidant products. |
