J&J to buy Mentor Corp for $1 billion

WASHINGTON: Johnson & Johnson (J&J), the world���s largest healthcare company, will acquire the breast implant maker Mentor Corp for $1.07 billion in cash.

Holders of Mentor will get $31 a share, almost double the $16.15 close for the Santa Barbara, California, company on November 28 in New York Stock Exchange composite trading.

J&J said in a joint statement with Mentor that the purchase will give J&J the ���opportunity to strengthen its presence in aesthetic and reconstructive medicine���.

The acquisition is expected to close in the first quarter of 2009 and will hurt earnings by 3 cents to 5 cents a share for the year, according to the statement. When net debt is included, the deal is valued at $1.12 billion.