J&J Acquiring DePuy For $3.5B

Johnson & Johnson said Tuesday it will buy DePuy for $3.5 billion in a move to take a lead in the $9 billion market for orthopedic devices

Johnson & Johnson said it will begin a cash tender offer on July 27 for all outstanding shares of DePuy at $35 a share. The offer will remain open for 20 days.

DePuy's stock soared on the news, rising 3 1/4 to 34 3/4. Johnson & Johnson's eased 5/16 to 76 13/16.

Johnson & Johnson said it has entered an agreement with Switzerland-based drug maker Roche to buy its 84 percent stake in DePuy.

Indiana-based DePuy is a market leader in the global orthopedic industry, the companies said. DePuy makes products for medical specialists that aim to repair damaged or diseased joints and facilitate fusion of the spine.

Written By Emily Church