J&J Acquires Acclarent for $785M

Johnson &Johnson seems to be on a spending spree this year.

The company’s surgical care unit, Ethicon, has acquired the privately-held medical device firm Acclarent Inc. for $785 million. The transaction, expected to close in the first quarter of next year, is likely to have an impact of about 3 to 4 cents on Johnson &Johnson’s 2010 adjusted earnings per share.

Based in Menlo Park, Calif., Acclarent develops devices for ear, nose and throat specialists. Its Balloon Sinuplasty and Relieva product portfolio give ENT patients alternatives to conventional endoscopic surgery.

The acquisition of Acclarent is the second in seven months for New Brunswick, N.J.-based Johnson & Johnson. In May, the firm shelled out $893 million for Cougar Biotechnology Inc., a Los Angeles, Calif.-based company with no marketed items but a promising pipeline of products. Analysts believe the two acquisitions are an attempt by Johnson &Johnson to introduce new products to its customers to offset declining sales.

The analysts might be right. Gary Pruden, company group chairman for Johnson &Johnson with responsibility for Ethicon’s worldwide business, said the acquisition represents an “important growth opportunity” for the company.

“Understanding and addressing customers’ unmet needs through innovation is a hallmark of both Acclarent and Ethicon’s success,” Pruden said in a statement onEthicon’s website. “This transaction represents an important growth opportunity for our business in an area where there were previously limited solutions available to patients.”

Acclarent executives said the merger would provide the company with a broader customer base.

“Millions of people suffer from ENT conditions, such as chronic sinusitis and obstructive sleep apnea,” said William M. Facteau, Acclarent president and CEO.“The opportunity to become part of Ethicon will enable us to continue to innovate and expand our reach so that more physicians and patients worldwide will benefit from our technology.”