NEW YORK — St. Jude Medical said it will pump up its cardiovascular business by buying rival heart-device maker AGA Medical for $1.04 billion.
The $20.80-a-share cash-and-stock deal offers a premium of 41 percent to AGA’s latest closing price. St. Jude also is taking on $225 million in debt held by AGA. St. Jude said the deal should close by year-end and add to its profit starting in 2011.
St. Jude plans to start a tender offer for AGA shares in the next few days. Shareholders who own about 63 percent of AGA stock have said they will tender their shares in support of St. Jude’s offer, and the boards of both companies have approved the deal.
The St. Paul, Minn., company is one of the world’s biggest heart-device makers. It said AGA will become part of its cardiovascular business, which makes vascular-closure and heart-valve products and reported $323 million in sales in 2009.
