NEW YORK (TheStreet) — Shares of Johnson & Johnson (JNJ) were declining in late-afternoon trading on Friday as the New Brunswick, NJ-based medical devices, pharmaceutical and packaged goods manufacturer agreed to buy Abbott Laboratories (ABT) medical optics’ unit for $ 4.3 billion in cash.
Abbott is a Chicago-based company that focuses on the discovery, development, manufacturing and sale of healthcare products.
Its medical optics unit focuses on vision care, with products in areas such as cataract surgery, laser vision correction and corneal care products like contact solution and eye drops, Abbott said in a statement.
The deal isn’t expected to be accretive in Abbott’s 2017 earnings, the company said.
Abbott noted that the deal is expected to close in the first quarter of 2017, pending shareholder approval.
Shares of Abbott were advancing in late-afternoon trading on Friday.
Separately, TheStreet Ratings objectively rated this stock according to its “risk-adjusted” total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer’s view or that of this articles’s author. TheStreet Ratings has this to say about the recommendation:
The team rates Johnson & Johnson as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that it rates. The company’s strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
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