One of the largest deals of the year may bring relief in years to come to those aching and aging body parts!

Yesterday saw one of the largest deals of 2011 announced, with the $19.5bn acquisition of Synthes, the Swiss-listed, US-headquartered medical devices company, by Johnson & Johnson.

If you read the website of Synthes then they say they “develop, produce and market instruments, implants and biomaterials for the surgical fixation, correction and regeneration of the skeleton and its soft tissues” – which to you and I as the un-initiated means they make strange looking “things” that help us if parts of our bodies wear out. In fact if you look at their 2010 annual report, you could mistake the opening pages for a futuristic designed jewellery catalogue.

This deal is the fourth biggest announced so far in 2011, and is it is the second biggest deal of all time in terms of the medical devices sector, being surpassed only by Boston Corporation’s acquisition of Guidant Corporation for $27bn back in early 2006.

Johnson & Johnson already own Depuy and in their press release on the deal have spoken about how the two companies together “will create the most innovative and comprehensive orthopaedics business in the world and enable us to better serve clinicians and patients worldwide".

The world has an ageing population, and an ageing population which is living longer and wanting to carry on with active lifestyles as long as possible. Clearly Johnson & Johnson recognise these facts, and the potential growth opportunities available via the increasing demand for medical devices that help maintain youthfulness.
 

Filed under: health, M&A, dealmaking