Johnson & Johnson in talks to acquire rest of Crucell for $2.3 billion

Johnson & Johnson announced that it is in "advanced negotiations" to acquire all outstanding shares of Dutch biotechnology company Crucell that it does not already own for 1.75 billion euros ($2.3 billion). The US company currently owns 18 percent of Crucell, under a deal reached last September, and through the new offer would pay 24.75 euros per share for the remaining stake, representing a 58 percent premium over the Dutch company's closing share price on Thursday.
The companies noted that "Crucell's strength in the manufacture, discovery and commercialization of vaccines would create a strong platform for Johnson & Johnson in the vaccine market." Crucell CEO Ronald Brus noted that through the earlier deal between the companies, which was focused on the treatment and prevention of influenza, the vaccine maker now "feels at home in the J&J family of companies."
If the deal is finalised, Johnson & Johnson said it will retain Crucell's existing facilities and senior management, as well as "generally…maintain current employment levels" and its headquarters in Leiden. Brus said he intended to stay on and did not expect any job cuts at Crucell, which produces vaccines against influenza and childhood diseases, and is developing products against yellow fever, tuberculosis, and malaria.
Although Johnson & Johnson has nearly completed due diligence, the transaction remains subject to approval from the management of both sides, as well as Crucell's board, the companies noted. They expect to complete the deal by the end of the year, Brus added. Shares in Crucell surged nearly 54 percent on the takeover news.
Commenting on the potential acquisition, Theodoor Gilissen Bankiers analyst Tom Muller, said that the price "is a nice premium" for Crucell shareholders, who he added "will be willing to sell." Meanwhile, Rabo Securities analyst Fabian Smeets remarked that he did not expect "a higher bid," because of Johnson & Johnson's current holding in the company, noting that GlaxoSmithKline and sanofi-aventis, which have their own vaccine operations, were unlikely to bid as Novartis could then terminate a partnership to supply components for Crucell's childhood vaccines. However, Jefferies International said that Novartis and Pfizer might still be potential bidders. Takeover talks between Wyeth and Crucell faltered last year after Pfizer made an offer to acquire Wyeth.
Reference Articles
Johnson & Johnson in talks to buy rest of Crucell for $2.3 billion in cash - (Bloomberg)
Johnson & Johnson and Crucell in advanced negotiations for an all cash public offer of 24.75 euros per ordinary share of Crucell - (Crucell)
J&J launches €1.75bn Crucell takeover - (Financial Times)
Johnson & Johnson plans to buy Crucell for $2.3B - (Forbes)
J&J in talks to buyout Crucell for $2.3 billion - (International Business Times)
Johnson & Johnson and Crucell in advanced negotiations for an all cash public offer of euro 24.75 per ordinary share of Crucell - (Johnson & Johnson)
J&J in talks to buy Crucell for $2.3 billion - (MarketWatch)
J&J in talks to buy Crucell (free preview) - (The Wall Street Journal)
J&J in talks to buy rest of Crucell for $2.3B - (TheStreet.com)
Johnson & Johnson aims to buy out Crucell - (Yahoo!News)
**Published by "First Word"