J&J Keeps Pounding Away-

Chismillionaire says, If you had to pick one stock to hold for the next Ten Years besides Berkshire Hathaway, this would be it.

NEW YORK (Dow Jones) -- Johnson & Johnson (JNJ) reached an agreement to acquire Omrix Biopharmaceuticals Inc. (OMRI) for about $438 million, gaining access to the biopharmaceutical company whose lead product controls surgical bleeding.

In early October, Omrix suspended a trial for its fibrin blood-clotting pad to investigate "an incident of post-operative bleeding." The suspension came a day after the company announced a mid-stage study that showed the pad was superior to Johnson & Johnson's Surgicel product.

Johnson & Johnson plans a tender offer of $25 a share for Omrix's approximately 17.5 million shares, an 18% premium over Friday's closing price of $21.16. Omrix founder and Chief Executive Robert Taub has agreed to tender about 16% of Omrix's outstanding shares.

The health-products maker said it expects to record an estimated $120 million charge for in-process research and development. The acquisition, expected to close by the end of December, is expected to be break-even or to slightly lower Johnson & Johnson's per-share earnings in 2009.

Omrix is expected to operate as a stand-alone entity reporting through Ethicon Inc., a Johnson & Johnson unit that provides suture, mesh, hemostats and other products for a range of surgical procedures.

Shares of Omrix were recently up 16% in premarket trading to $24.55, while Johnson & Johnson shares were up 4.7% at $61.10.