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Johnson & Johnson reveals biggest deal in its 130-year history, becoming the world’s largest healthcare company.
Johnson & Johnson reveals biggest deal in its 130-year history, becoming the world’s largest healthcare company with a total market capitalization of $358.4 Billion. Johnson & Johnson has announced the completion of the acquisition of Actelion Ltd for a total purchase price of nearly $30 billion in cash, considerably more than investors had been expecting. The purchase was originally announced on January 26th, 2017 when the companies agreed that as part of the transaction, Swiss company, Actelion would change from its drug discovery operations and early-stage clinical development to a newly created biopharmaceutical company named, Idorsia Ltd. The company is headed by Actelion founder Jean-Paul Clozel, a French cardiologist.
The deal was completed through an all-cash public tender offer by Johnson & Johnson's Swiss subsidiary, Janssen Holding GmbH, acquiring all publicly held shares of Actelion Ltd for $280 per share, payable in US dollars, amounting to nearly $30 billion.
The subsidiary of Johnson & Johnson will initially hold 9.9% of the shares of Idorsia and will have the right to an additional 22.1% of Idorsia's outstanding equity, potentially increasing to 32%.
Alex Gorsky, Chairman and chief executive officer of Johnson & Johnson added that this acquisition would bring an even stronger pharmaceutical business and expand their portfolio of differentiated in-market medicines and promising late stage products "We are very pleased to complete this compelling transaction and look forward to the value it will create for Johnson & Johnson and for patients around the world suffering from pulmonary arterial hypertension (PAH) and other serious illnesses… We are excited to welcome our new Actelion colleagues to the Johnson & Johnson Family of Companies as we work together to improve the health of people around the world."
Johnson & Johnson expects the transaction to add approximately $1.3 billion in sales for Q4 of 2017.