Guidant Corporation And Johnson & Johnson Announce New Acquisition Agreement
Indianapolis, IN and New Brunswick, NJ - Guidant Corporation and Johnson & Johnson recently announced that they have reached a new agreement whereby Johnson & Johnson will acquire Guidant for $24.2 billion in fully diluted equity value. The boards of directors of both companies have unanimously approved the revised Johnson & Johnson offer and the Guidant board of directors recommends that Guidant shareholders vote in favor of the revised merger agreement at the scheduled January 31 shareholder meeting.
Under the new agreement, Johnson & Johnson will pay $40.52 in cash and .493 shares of Johnson & Johnson common stock for each outstanding share of Guidant common stock. Valued as of the market close on January 13, the transaction has a per share value of $71.00 to Guidant shareholders.
"This agreement with Johnson & Johnson provides significant financial value and certainty for shareholders," said James Cornelius, chairman and chief executive officer, Guidant Corporation. "Together with Johnson & Johnson, we will have the resources to continue to build upon the existing Guidant businesses in our pursuit of meaningful innovations to address cardiovascular disease."
Johnson & Johnson Chairman and Chief Executive Officer William C. Weldon indicated that the companies are eager to close and begin to implement the integration plans they have been developing throughout the past year. "Together, we are ready to execute our plans focused on creating the world's broadest and most comprehensive cardiovascular device company that will bring meaningful technology solutions to address this devastating disease," he said. "The legacy of the Guidant organization and the people who have built it are assets that serve as a firm foundation for future growth in this important category."
The companies will promptly file updated materials with the Securities and Exchange Commission (SEC), including a supplement to the existing proxy statement/prospectus.
Johnson & Johnson will discuss the transaction further at its scheduled analyst meeting on January 24.
Guidant Corporation pioneers lifesaving technology, giving an opportunity for better life today to millions of cardiac and vascular patients worldwide. The Company develops, manufactures and markets a broad array of products and services that enable less invasive care for some of life's most threatening medical conditions. For more information, visit www.guidant.com.
Johnson & Johnson is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. The more than 200 Johnson & Johnson operating companies employ approximately 115,000 men and women in 57 countries and sell products throughout the world.
SOURCE: Johnson & Johnson