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Bulletin: Johnson & Johnson Ratings Unaffected By $21.3 Billion Acquisition Of Synthes Inc.
Standard & Poors, April 2011
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Abstract
NEW YORK (Standard & Poor's) April 27, 2011--Standard & Poor's Ratings Services said today that New Brunswick, N.J.-based Johnson & Johnson's (AAA/Stable/A-1+) agreement to acquire Synthes Inc. does not affect the ratings on the company. The net value of the acquisition is $19.3 billion given about $2 billion in acquired cash and short-term investments. The cash outlay for Johnson & Johnson (J&J) is relatively minor, because 65% of the consideration for Synthes will be in the form of J&J common equity with only 35% of cost in cash. The expected cash outlay of $6.8 billion is less than one-quarter of J&J's $27.7 billion of cash and investments reported Dec. 31, 2010. Moreover, we expect cash flow after dividends to exceed...
Companies mentioned in this report are: Johnson & Johnson
Action: Bulletin
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