Summary
Abbott Laboratories (ABT) has officially completed its acquisition of St. Jude Medical, Inc. (St. Jude Medical) on January 4, 2017. This significant transaction was executed through a two-part merger, culminating in St. Jude Medical becoming a wholly owned subsidiary of Abbott. The acquisition was valued at approximately $23.6 billion, comprising about $10 billion in Abbott common shares and $13.6 billion in cash. This strategic move is expected to significantly bolster Abbott's position in the medical device market, particularly in cardiovascular and neuromodulation technologies. Investors should note the substantial financing involved, including an Amended and Restated Term Loan Agreement of approximately $2.3 billion and a $2.0 billion Bridge Term Loan Agreement, both fully guaranteed by Abbott.
Key Highlights
- 1Abbott Laboratories completed the acquisition of St. Jude Medical, Inc. on January 4, 2017, through a two-part merger process.
- 2The total transaction value was approximately $23.6 billion, consisting of $10 billion in Abbott common shares and $13.6 billion in cash.
- 3St. Jude Medical common stock shareholders received 0.8708 shares of Abbott common stock and $46.75 in cash per share.
- 4Abbott has guaranteed an Amended and Restated Term Loan Agreement for St. Jude Medical, LLC (the surviving entity) with an outstanding principal of approximately $2.3 billion.
- 5Abbott also borrowed $2.0 billion under a 120-Day Bridge Term Loan Agreement to facilitate the acquisition.
- 6The acquisition is expected to enhance Abbott's presence in the medical device sector, particularly in cardiovascular and neuromodulation.
- 7Financial statements and pro forma information for the acquired business will be filed via amendment within 71 days.