Johnson & Johnson closes $16.6B Abiomed deal

Dawn Furnas//December 22, 2022

Johnson & Johnson closes $16.6B Abiomed deal

Dawn Furnas//December 22, 2022

Johnson & Johnson completed its previously announced $16.6 billion acquisition of medical tech company Abiomed on Dec. 22, the New Brunswick company said that day. 

As part of the deal, announced Nov. 1, Massachusetts-based Abiomed will operate as a standalone business in Johnson & Johnson’s MedTech segment. 

Abiomed focuses on technology for heart, lung and kidney support; therefore, the move expands MedTech’s reach into the area of cardiovascular disease.   

Joaquin Duato, CEO, Johnson & Johnson

“This acquisition marks another important step on Johnson & Johnson’s path to accelerating growth in our MedTech business and delivering innovative medical technologies to more people around the world,” Johnson & Johnson CEO Joaquin Duato, who will also serve as chairman in 2023, said in a statement. 

Ashley McEvoy, executive vice president and worldwide chairman of MedTech, added, “The completion of this acquisition allows Johnson & Johnson MedTech to expand our portfolio in the high growth cardiovascular markets, adding solutions for heart recovery to our global market leading Biosense Webster electrophysiology business.”

In November, McEvoy discussed what the deal meant for both companies. 

“Abiomed’s skilled workforce and strong relationships with clinicians, along with its innovative cardiovascular portfolio and robust pipeline, complement our MedTech portfolio, global footprint and robust clinical expertise. Together, we have the incredible opportunity to bring lifesaving innovations to more patients around the world,” McEvoy said then. 

Johnson & Johnson’s tender offer for all outstanding shares of Abiomed for an upfront payment of $380 per share expired at 11:59 p.m. ET Dec. 21. Abiomed shareholders will also receive a non-tradeable contingent value right entitling them to receive up to $35 per share in cash if certain commercial and clinical milestones are achieved, J&J said. 

American Stock Transfer & Trust Company LLC, the depositary for the tender offer, said approximately 25.8 million shares of Abiomed common stock were tendered and not properly withdrawn in the offer –or 57.1% of the outstanding shares. 

As part of the deal, Johnson & Johnson acquired shares of Abiomed that were not tendered in the offer and converted into the right to receive $380 per share in cash plus a CVR. 

Johnson & Johnson said the deal will not have a material impact on financial results for 2022. 

In November 2021, J&J announced its plans to split into two publicly traded companies: one focusing on consumer health products, which will be called Kenvue, and the other on pharmaceutical and medical device operations. In February, the company announced the medical devices division would rebrand as Johnson & Johnson MedTech. The split is on track to be completed in 2023.