Johnson & Johnson to Acquire Heartport for $81 Million

Johnson & Johnson(JNJ Quote - Cramer on JNJ - Stock Picks) agreed to acquire cardiac surgery products maker Heartport(HPRT Quote - Cramer on HPRT - Stock Picks) for $81 million in stock.

Hearport, which is based in Redwood City, Calif., makes cardiac surgery products used in less-invasive procedures. The company will become part of Johnson & Johnson's Ethicon Worldwide division, a maker of surgical products.

Heartport shareholders will receive $2.72 in Johnson & Johnson common stock for each share of Heartport. As of the third quarter of 2000, Heartport had about 26.3 million shares outstanding.

In morning trading on the Nasdaq, Heartport gained 69 cents, or 35.5%, to $2.62. The 52-week high was $8.31, while the low for the year was $1.50. Johnson & Johnson, New Brunswick, N.J., gained $1.25, or 1.4%, to $93 on the New York Stock Exchange.

The companies expect to complete the transaction in the second quarter of 2001.