Johnson & Johnson divests DePuy trauma business to clear way for Synthes deal

Indiana-based Biomet said it has made a binding offer to acquire the trauma business of Johnson &Johnson’s DePuy Orthopeadics subsidiary for approximately $280 million in cash.The deal is expected to clear the way for New Brunswick-based Johnson &Johnson to receive regulatory approval to complete its acquisition of Synthes. The binding offer allows Depuy to comply with its consultation agreements with various Europeon works councils before it enters a negotiated sale agreement.DePuy’s trauma business includes a range of products used in reconstructive surgery, including implants, plates and surgical nails as well as specialized technology for treating shoulder, ankle, finger and wrist injuries.
Biomet, a company that makes everthing from spinal hardware to joint replacement devices, said the proposed acquisition of DePuy would strengthen its presence in the global trauma market and expand its sports and extremities business.Both DePuy and Biomet are based in Warsaw, IN.
Nearly a year ago, Johnson &Johnson announced it would purchase Swiss-based Synthes for $21.3 billion. The acquisition — the largest in Johnson &Johnson’s history — positions it to be a leader in the $5.5 billion worldwide market for devices used to treat trauma injuries.
“We believe this divestiture will satisfy all regulatory concerns relating to the pending purchase of Synthes,’’ Johnson &Johnson spokesman Bill Price said in an emailed statement, “but we will not know with certainty until the regulatory processes in the EU and the US are completed.’’”We continue to make progress in our work with antitrust authorities on the Synthes transaction,’’ Price said.
The deal is expected to close in the second quarter.
Source:Susan Todd/The Star-Ledger