Diversified health care-products company Johnson & Johnson said Monday it will pay $438 million for Omrix Biopharmaceuticals Inc., in a move to expand its surgical product unit.
J&J will pay $25 per share in a cash tender offer, scheduled to close at the end of December. The offer is an 18 percent premium over Omrix's closing price of $21.16 Friday. Both companies' boards of directors have approved the deal.
Meanwhile, Omrix's founder and chief executive, Robert Taub, agreed to tender 16 percent of the outstanding shares.
If completed, New York-based Omrix would operate as a stand-alone entity through the Ethicon unit, which sells a range of surgical products. The deal would result in a $120 million charge for J&J in 2008.
The Ethicon unit already has certain distribution rights in the U.S. and Europe for Omrix's Evithrom and Evicel, both of which are used to control bleeding during surgical procedures. Meanwhile, Ethicon and Omrix are partners on the development of another surgical product.
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