J&J To Acquire Stroke-Treatment Co Micrus For $480 Million

Johnson & Johnson (JNJ) has agreed to acquire Micrus Endovascular Corp. (MEND) for $480 million, adding stroke-treatment device offerings to its wide breadth of medical products.

The health-care giant has seen earnings rise lately, helped by rising sales and a $1.7 billion settlement with Boston Scientific Corp. (BSX). It has been stung recently by restructuring charges, the impact from U.S. health-care overhaul legislation and the fallout from recalls of over-the-counter medicines such as Tylenol and Motrin.

Under the deal, Johnson & Johnson will pay $23.40 for each Micrus share, a 5.5% premium to Friday's closing price and a level last seen in 2007. The target makes implantable and disposable devices for treatment of cerebral vascular diseases, such as aneurysms responsible for strokes. Its earnings soared in its latest quarter and has seen a stretch of improved bottom lines.

The deal is expected to close in the second half of the year and have no effect to the company's earnings or reduce them "slightly."

J&J dropped 9 cents in premarket trading to $60.45.

 
   -By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240, [e-mail]