Abbott to Pay $25B for St. Jude Medical

Thursday, April 28, 2016

Source: MassDevice

Abbott (NYSE:ABT) said today that it offered to pay a 37% premium for St. Jude Medical (NYSE:STJ) in a $25 billion deal aimed at expanding its cardiac and neurological businesses.

The companies said the union will create a “best-in-class” competitor in nearly all segments of the cardiovascular market with the 1st or 2nd position “across large and high-growth cardiovascular device markets” with combined annual sales of about $8.7 billion. The deal also calls for Abbott to assume or refinance St. Jude’s $5.7 billion in net debt.

“Bringing together these 2 great companies will create a premier medical device business and immediately advance Abbott’s strategic and competitive position,” Abbott chairman & CEO Miles White said in prepared remarks. “The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world.”

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