J&J: Now Master Over Mentor (MNT, JNJ)

If you thought that high-premium buyouts or M&A was dead, that is not the case in at least some opportunities.  Mentor Corp. (NYSE: MNT) has just secured a major premium buyout this Monday morning with Johnson & Johnson (NYSE: JNJ) as the suitor.

Mentor will be acquired for approximately $1.07 billion in a cash tender offer valued at $31.00 per share.

Mentor Corporation is in the development, manufacturing, licensing, andmarketing of various products for the aesthetic and general surgerymarkets.  The company will operate as a stand-alone business unit underJ&J’s ETHICON, Inc. unit, a provider of suture, mesh and otherproducts for a wide range of surgical procedures.  One of Mentor’soperations it is best known for is its breast augmentation andreconstruction operations.

This is actually a near-100% buyout premium.  Shares of Mentor closedat $16.15 on Friday, and the 52-week trading range is $13.33 to $40.82.

Jon C. Ogg
December 1, 2008