The Wall Street Journal-20080214-Fujifilm Offers --36-1-44 Billion to Acquire Drug Maker

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Fujifilm Offers $1.44 Billion to Acquire Drug Maker

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TOKYO -- Fujifilm Holdings Corp. offered to pay as much as 155 billion yen ($1.44 billion) to acquire midsize drug maker Toyama Chemical Co., a deal that represents the photography company's biggest push yet into medical products to drive its growth.

The offer, structured as a combination of a tender-offer bid and private placement, values Tokyo-based Toyama at 880 yen a share, a 39% premium to the company's closing price of 631 yen Tuesday.

The proposal is part of Fuji's shift toward medical products and away from conventional photographic equipment, which is falling from favor as consumers choose digital cameras. The company is interested in furthering its product mix to include diagnostic and other drugs.

Fuji is trying to boost sales of medical products to one trillion yen in 10 years from the current level of 300 billion yen.