J&J ready to sell $280m unit to seal $21bn trauma device takeover

Johnson & Johnson may sell the global trauma business of its DePuy unit to Biomet Inc for $280m (€210m) in cash to remove a regulatory obstacle to its planned purchase of Synthes Inc.

The binding offer from device maker Biomet, a closely held device maker based in Warsaw, Indiana, covers DePuy’s devices to treat bone fractures and expires June 1, Biomet said. It is subject to regulatory review and is expected to close in the second quarter, said Lorie Gawreluk, a spokeswoman for J&J.

The European Commission opened an expanded probe in November into Johnson & Johnson’s bid to buy Synthes for about $21.3bn (€16bn) in a deal that would make J&J the leader in the $5.5bn trauma device market. The regulator in Brussels is expected to rule on the acquisition by Apr 26.

The J&J spokeswoman said: “We believe this divestiture will satisfy all regulatory concerns relating to the pending purchase of Synthes by Johnson & Johnson, but we will not know with certainty until the regulatory processes in the EU and US are completed.

“We continue to make progress in our work with antitrust authorities on the Synthes transaction and look forward to close in the first half of this year.”

The purchase will bolster Biomet’s presence in the global trauma market, a “growth driver” for the company, chief executive Jeffrey Binder said in a statement.

— Bloomberg