Abbott Laboratories acquires St. Jude Medical in $25B deal

ST. PAUL, Minn., April 28 (UPI) -- Healthcare giant Abbott Laboratories agreed to buy medical device maker St. Jude Medical in a deal valued at some $25 billion.

The companies said they reached the cash-and-stock agreement that would strengthen St. Jude Medical's stake in the medical device market to create a global giant in cardiovascular care. The company will hold the leading position in the cardiovascular device market, giving "the depth, breadth and innovation to help patients restore their health, reduce costs for payors and deliver greater value to customers," Abbott said.

"Bringing together these two great companies will create a premier medical device business and immediately advance Abbott's strategic and competitive position," said Miles D. White, chairman and chief executive officer of Abbott. "The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world."

Under the agreement, St. Jude Medical shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock. That equals about $85 per share, a 37 percent premium to the stock's closing price on the day of the announcement. Abbott plans to assume or refinance St. Jude Medical's $5.7 billion debt.

St. Jude has about 18,000 employees worldwide and has five major areas of focus: heart failure, atrial fibrillation, neuromodulation, traditional cardiac rhythm management and cardiovascular. Abbott, based in Abbott Park., Ill., has some 74,000 employees.