J&J Pays Up for Breast Implant Maker Mentor

J&J is paying $31 for each Mentor share, a 92% premium to Friday's closing price. The stock traded above $31 as recently as June.

While most of Mentor's sales are from breast implants -- the company focuses on reconstruction for cancer patients, Mentor is awaiting word from the Food and Drug Administration for face fillers, the market for wrinkle treatment now dominiated by Botox.

Mentor, which will become part of J&J's Ethicon surgical-products business, is expected to cut J&J's 2009 earnings by about 3 cents to 5 cents a share. Analysts were expecting $4.67.

The deal, set to close in the first quarter, comes a week after JNJ said it agreed to buy Omrix Biopharmaceuticals Inc. (OMRI) for about $438 million, giving J&J full access to products which control bleeding during surgery.

-- Mike Barris, Dow Jones Newswires