Johnson & Johnson to Buy Closure Medical

Johnson & Johnson (J&J) has reached a deal to buy Closure Medical, a maker of wound adhesives, for roughly $370 million in cash.

Under the definitive agreement, stockholders will receive $27 for each outstanding Closure share. J&J said it expects to log a charge of approximately $68 million, or 2 cents per share, to write off in-process R&D from the transaction. Closure will operate as a part of J&J subsidiary Ethicon.

Raleigh, N.C.-based Closure's primary product is its Dermabond tissue glue, which forms a waterproof seal over lacerations and wounds and eliminates the need for sutures or bandages. Last year, the company turned a profit of $9.8 million on revenue of $40.1 million. The acquisition has been approved by Closure's directors and is pending regulatory and shareholder approval. The deal is expected to close in the second quarter.