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 Global healthcare giant Johnson & Johnson (J&J) Ltd said yesterday that the company has received the final clearance from US regulator for its $19.7-bn acquisition of Swiss orthopaedic devices maker Synthes Inc.
The purchase will push J&J to a dominant position in the orthopaedic surgery market globally. J&J said in a statement it expects to complete the transaction on 14 June. It has received all the necessary regulatory approvals required to close the cash and stock deal, the company's largest acquisition ever. West Chester, Pennsylvania-based Synthes develops, produces and markets instruments, implants and biomaterials for the surgical fixation of human skeleton and its soft tissues. The company reported sales of nearly $4 billion in 2011. Synthes chairman Hansjörg Wyss, along with his family is the largest shareholder of the company, owning nearly 48 per cent of its shares.
Under the terms of the deal, each outstanding share of Synthes will be converted into the right to receive 55.65 Swiss francs ($58.22) in cash and 1.72 shares of J&J. The exchange ratio is based on the average of the volume weighted average trading prices of J&J on New York Stock Exchange on each of the 10 consecutive trading days ending two days prior to the time of merger, as converted into Swiss francs.
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