Abbott To Acquire St. Jude Medical In $25 Bln Deal - Quick Facts

(RTTNews) - Abbott (ABT) and St. Jude Medical, Inc. announced a definitive agreement for Abbott to acquire St. Jude Medical. Under the agreement, St. Jude Medical shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of approximately $85 per share. This represents a total transaction equity value of $25 billion.

Abbott expects the acquisition of St. Jude Medical to be accretive to adjusted earnings per share in the first full year after closing and increasing thereafter, with approximately 21 cents of accretion in 2017 and 29 cents in 2018.

St. Jude Medical's net debt of approximately $5.7 billion will be assumed or refinanced by Abbott. Abbott expects to issue $3 billion of common stock in the secondary market to rebalance its capital structure, with timing to be determined.