Johnson & Johnson agreed Tuesday to buy DePuy Inc., the world’s second-largest maker of spinal implants, for $3.5 billion in cash, giving it more products used to replace or repair bones and joints.
Johnson & Johnson, the world’s No. 5 drugmaker, will pay $2.9 billion to Roche Holding AG of Switzerland for its 84 percent stake in DePuy. It will also offer $35 a share for the rest of the Warsaw, Ind.-based company.
The purchase will make New Brunswick-based J&J one of the top designers in the $9 billion-a-year worldwide market for orthopedic devices.
It will also tap into faster-growing areas:
The market for some DePuy products such as spinal implants is expanding 40 percent a year, while demand for older devices, such as knee or hip joints, is rising just 5 to 10 percent.
“The acquisition helps accelerate their growth,” said analyst Erick Lucera at Independence Investment Associates, which held about 2.8 million Johnson & Johnson shares according to recent regulatory filings. “It’s been a key issue for J&J.”
In the stock market, DePuy shares jumped $3.06, to $34.56, and Johnson & Johnson shares fell 87 cents, to $76.25.
