Johnson & Johnson announced on Monday that it would pay $1.07 billion in cash to buy Mentor Corporation, a supplier of medical products for the aesthetic market.

The deal comes, just a week after, when Johnson & Johnson has agreed to acquire Omrix Biopharmaceuticals Inc. for about $438 million, giving J&J full access to products which control bleeding during surgery.

Under the terms of the agreement, Johnson & Johnson will commence a tender offer to purchase all outstanding shares of Mentor at $31.00 per share, which is a premium of $14.85, or 92% over its closing price of $16.15 a share on Friday.

Mentor is anticipated to operate as a stand-alone business unit reporting through Ethicon, Inc., a unit of Johnson & Johnson Company and leading provider of suture, mesh and other products for a wide range of surgical procedures.

Upon closing, the transaction is expected to cut Johnson & Johnson's 2009 earnings per share of 3-5 cents. While market watchers are anticipating $4.67.

The boards of directors of Johnson & Johnson and Mentor have already approved the transaction, which is expected to close in the first quarter of 2009.