Johnson & Johnson (JNJ), US based pharmaceutical and FMCG major, has signed a deal to acquire Israel's Omrix Biopharmaceuticals (OMRI) for about $438 million in cash.

Under the terms of the agreement, Johnson & Johnson will begin a tender offer for Omrix's approximately 17.5 million shares at $25 a share, which represents a 18.1 percent premium to Omrix' Friday close of $21.16 on the NYSE.

Omrix is anticipated to function as a stand-alone entity reporting through Ethicon Inc., a Johnson & Johnson unit that also produces medical products used in surgical procedures.

The boards of both companies have already sanctioned the permission to deal, which is expected to close by the end of December 2008.

Johnson & Johnson quoted during a statement that, acquisition is expected to be breakeven to slightly dilutive to its 2009 per-share earnings.

Market analysts believe that the latest move by the company is for expansion of its bio-surgical and immunotherapy product offerings.
Shares of J&J closed on Monday at $59.11, up 1.3 per cent, or 76 cents. The scrip touched intraday high and low of $59.89 and $57.92.