J&J to Acquire Guidant for $23.9 Billion

Following a week of fierce speculation, Johnson & Johnson (New Brunswick, NJ, USA) has agreed to acquire Guidant Corp. (Indianapolis, IN, USA) for U.S.$23.9 billion in cash and stock.

Guidant business units include cardiac rhythm management (pacemakers and implantable cardioverter defibrillators), vascular intervention, cardiac surgery, and endovascular solutions. These businesses will complement Johnson & Johnson's products and services in cardiology and its medical devices and will provide future benefits through collaboration with the pharmaceutical and diagnostics businesses of Johnson & Johnson.

Guidant and Cordis Corp., a Johnson & Johnson company, will become part of a newly created cardiovascular device unit within Johnson & Johnson. This new unit will be named Guidant while the Cordis name will be retained for select businesses within the unit. As a combined entity, Guidant and Cordis will be more effective in bringing technologically based and innovative approaches to the treatment of cardiovascular diseases. The cardiovascular segment continues to be one of the fastest growing areas in healthcare as populations around the world grow older.

"The combination of these business will enable us to bring innovative new therapies to patients and their physicians in this very important and fast-growing therapeutic area,” said William C. Weldon, chairman and CEO of Johnson & Johnson. "Bringing Guidant into the Johnson & Johnson family of companies builds on our history of strategic acquisitions and partnerships that provide a foundation for sustained leadership and growth.” Johnson & Johnson has more than 200 operating companies in 57 countries.




Related Links:
Johnson & Johnson
Guidant Corp.