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J&J to acquire Omrix for $438 million

NEW YORK (Reuters) - Johnson & Johnson JNJ.N said on Monday it agreed to acquire Israel's Omrix Biopharmaceuticals OMRI.O for about $438 million in cash, to expand its biosurgical and immunotherapy product offerings.

The $25-per-share deal represents a 18.1 percent premium to Omrix’ Friday close of $21.16 on the New York Stock Exchange.

Omrix is expected to operate as a stand-alone entity reporting through Ethicon Inc, a Johnson & Johnson unit that also produces medical products used in surgical procedures.

The boards of both companies have approved the deal, which is expected to close by the end of December 2008.

If the deal closes in 2008, Johnson & Johnson is expected to incur an estimated one-time, after-tax charge of about $120 million reflecting the write-off of in-process research and development charges.

The acquisition is expected to be breakeven to slightly dilutive to Johnson & Johnson’s earnings per share in 2009.

Reporting by Euan Rocha; Editing by Derek Caney

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