8-KOther Events

JOHNSON & JOHNSON 8-K Report, Corporate Update (Feb 5, 2010)

Filed February 5, 2010For Securities:JNJ

Summary

Johnson & Johnson (JNJ) announced on January 20, 2010, the completion of its acquisition of Acclarent, Inc. through its subsidiary Ethicon, Inc. The purchase price for Acclarent, a medical technology company focused on ear, nose, and throat (ENT) devices, was approximately $785 million. This strategic move is aimed at expanding JNJ's presence in the ENT market and bolstering its medical device portfolio. While this acquisition represents an investment in future growth, investors should note the expected near-term financial impact. The transaction is anticipated to be dilutive to Johnson & Johnson's adjusted earnings per share (EPS) by approximately $0.03 to $0.04 in 2010. This dilution reflects the integration costs and the immediate financial contribution of Acclarent relative to JNJ's overall earnings.

Key Highlights

  • 1Acquisition of Acclarent, Inc. by Ethicon, Inc. (a JNJ subsidiary) completed.
  • 2Acclarent is a medical technology company focused on Ear, Nose, and Throat (ENT) devices.
  • 3The purchase price for Acclarent was approximately $785 million.
  • 4The acquisition is expected to be dilutive to JNJ's 2010 adjusted EPS by $0.03 to $0.04.
  • 5This move expands JNJ's medical device segment, specifically in the ENT space.

Frequently Asked Questions

The acquisition of Acclarent, Inc. by Johnson & Johnson's subsidiary Ethicon, Inc. was aimed at expanding JNJ's presence and offerings in the Ear, Nose, and Throat (ENT) medical device market.

Acclarent, Inc. is a privately held medical technology company that designs, develops, and commercializes devices for conditions affecting the ear, nose, and throat.

The company anticipates that the acquisition will have a dilutive impact on its adjusted earnings per share (EPS) in 2010, reducing it by approximately $0.03 to $0.04.

The total purchase price for Acclarent, Inc. was approximately $785 million.