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J&J Buys Omrix
$438 million biopharma deal brings into global conglomerate an expanded biosurgical, immunotherapy platform.
November 24, 2008
Johnson & Johnson, the listed, global pharmaceuticals and consumer products company, bought Omrix Biopharmaceuticals Inc. for $438 million, it was announced Monday. The deal, coming at a time when M&A is increasingly unraveling, highlights how the healthcare sector as a whole has better-withstood the economic downturn.
A Rodman & Renshaw analysis posted by Thomson Financial said it is likely “[Johnson & Johnson] will take this transaction to the finish line,” and went on to call the deal a bargain for the multinational conglomerate.
The deal, according to the Rodman & Renshaw report, values the listed, New York-based Omrix at about 4.5 times its anticipated 2009 revenue. The report predicted that Omrix chief executive Robert Taub will leave the company as it is integrated into Johnson & Johnson’s Ethicon division and that operating chief and president Nissim Mashiach will remain with the new, integrated firm.
Cravath, Jones Day and Weil Gotschal represented Johnson & Johnson as legal advisor; it did not use a financial advisor. Skadden, Arps’ David Fox, Kathy Bristor and Randall Doud represented Omrix; UBS acted as its financial advisor.
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