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Pharmaceutical

Johnson & Johnson gets Israel''s approval for acquisition of Omrix

December 16, 2008
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The Israeli government has approved Johnson & Johnson''s planned acquisition of business partner Omrix Biopharmaceuticals Inc., a move to boost the health products giant''s surgical care business, according to the Associated Press. J&J received notification of the approval from the Israeli General Director of the Antitrust Authority. The notification was one of the conditions of Johnson & Johnson''s cash tender offer, which is to expire at midnight on Dec. 23. New Brunswick, N.J.-based Johnson & Johnson is offering $25 per share for Omrix, an 18 percent premium over its $21.16 price right before the Nov. 24 announcement of the $438 million deal. Omrix, which sells products including liquid sealants to control bleeding during surgery, has a five-year-old partnership with J&J''s Ethicon surgical products unit for development and distribution of Omrix products. Omrix is headquartered in New York but has its research and manufacturing operations in Tel Aviv. Boards of directors of both companies have approved the deal, and Omrix founder and Chief Executive Robert Taub has agreed to tender 16 percent of the outstanding shares. Besides J&J getting a majority of outstanding shares, the deal requires customary closing conditions and approval by the Investment Center of Israel.

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