Johnson & Johnson (JNJ) has agreed to acquire Micrus
Endovascular Corp. (MEND) for $480 million, adding stroke-treatment
device offerings to its wide breadth of medical products.
The health-care giant has seen earnings rise lately, helped by
rising sales and a $1.7 billion settlement with Boston Scientific
Corp. (BSX). It has been stung recently by restructuring charges,
the impact from U.S. health-care overhaul legislation and the
fallout from recalls of over-the-counter medicines such as Tylenol
and Motrin.
Under the deal, Johnson & Johnson will pay $23.40 for each
Micrus share, a 5.5% premium to Friday's closing price and a level
last seen in 2007. The target makes implantable and disposable
devices for treatment of cerebral vascular diseases, such as
aneurysms responsible for strokes. Its earnings soared in its
latest quarter and has seen a stretch of improved bottom lines.
The deal is expected to close in the second half of the year and
have no effect to the company's earnings or reduce them
"slightly."
J&J dropped 9 cents in premarket trading to $60.45.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240, matthew.jarzemsky@dowjones.com