Johnson & Johnson acquires Omrix Biopharmaceuticas for $465 million

Healthcare products company Johnson & Johnson has agreed to buy New York-based Omrix Biopharmaceuticas, which develops and manufactures biosurgical sealants for the prevention of homeostasis in surgery, for $465 million.

The acquisition will help Johnson & Johnson expand it's biosurgical and immunotherapy product range, the companies said in a release.

As per the terms of the deal,  J&J will pay $25 per share in a cash tender offer, scheduled to close at the end of December. The offer is at an 18 per cent premium to Omrix's closing price of $21.16 on Friday. The boards of both companies have approved the deal.

Omrix will operate as a stand-alone entity reporting through J&J subsidiary-Ethicon, the companies said. Ethicon has been Ormix's partner in Israel for eight years.

Since New York-based Omrix does most of its research and manufacturing in Israel, the acquisition is conditioned on Israeli antitrust clearance and other customary closing conditions.

The rumors of an imminent sale broke at the end of last week, after a team from Ethicon arrived in Israel and began a thorough review of the company.