J&J Gets Israel’s Approval for Omrix Acquisition

Johnson & Johnson has received approval from the Israeli government for its acquisition of business partner Omrix Biopharmaceuticals Inc. The move is designed to boost J&J’s surgical care business.

The approval came from the Israeli General Director of the Antitrust Authority. The notification, dated Dec. 10, was one of the conditions of J&J’s cash tender offer, which is to expire at midnight on Dec. 23.

The New Brunswick, NJ-based company is offering $25 per share for Omrix, an 18% premium over its $21.16 price just before the Nov. 24 announcement of the $438 million deal.

Omrix sells products including liquid sealants to control bleeding during surgery. It has a 5-year-old partnership with J&J’s Ethicon surgical products unit for development and distribution of Omrix products.

Though it is headquartered in New York, Omrix has research and manufacturing operations in Tel Aviv, Israel.

The boards of directors of both companies approved the deal, and Omrix founder and Chief Executive Robert Taub has agreed to tender 16% of the outstanding shares. J&J is expected to receive a majority of outstanding shares.

The deal still requires customary closing conditions and approval by the Investment Center of Israel.