+ link to The Press Release
Post-deal numbers...
The largest combined Orthopedics company by a mile
Largest acquisition in J&J history
Merger will affect 22,000 employees worldwide
J&J/Depuy + Synthes = 28% market share in orthopedics (by comparison: SYK has 14% and ZMH has 13%)
Chairman Dr. Hansjorg Wyss, who controls 48% of Synthes, is now the richest man in Switzerland with a fresh $10B
Deal represents a 22% premium over the stock value before the announcement
J&J is paying 5.4X Synthes gross sales in 2010
The stock transaction details - each share of Synthes common stock exchanged would be converted into 55.65 francs in cash, plus not more than 1.9672 and not fewer than 1.7098 shares of J&J common stock
The Acquisition will allow J&J to add 5% to its 2012 earnings
Pre-deal numbers...
J&J market cap was $165B
J&J had $19B in cash
Synthes market cap was $19B and carried only $98M in debt
Synthes 2010 sales was $3.7B
Synthes is said to own 50% of the sales of the plates and screws in trauma
The $5.5B trauma market grew 8% in 2010
Other considerations...
J&J may have to divest some trauma assets to get regulatory clearance for the deal
T...
