J&J to get Guidant for $21.5bn

New Jersey-based Johnson & Johnson (J&J) has agreed to purchase troubled medical equipment manufacturer Guidant Corp. for $21.5 billion.

The company has been embroiled in product recalls and regulatory probes. J&J agreed to buy the company for $4 billion less than it had previously agreed. It will offer $63.08 a share.

Guidant had earlier filed a lawsuit against J&J for dragging its feet during the merger process. The company had agreed to buy up Guidant in December, before the company was hit with a string of problems with its defibrillators and pacemakers.

James M Cornelius, chairman of Guidant, said: “Our enthusiasm for this agreement and its potential continues. This agreement makes sense for Guidant shareholders and employees. It amplifies the opportunity for us to do more for patients with cardiovascular disease through a union with Johnson & Johnson.”

Chief executive and chairman of J&J, William C Weldon, said he was delighted: “Our agreement demonstrates that we remain committed to the goal of together building an extraordinary cardiovascular business that can deliver better medical options sooner to millions of patients.”

The offer will be put to Guidant shareholders next year.

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