Johnson & Johnson is splashing out over $1 billion to acquire Mentor Corp, which specialises in products for the aesthetic market, such as breast implants and liposuction technology.

J&J’s Ethicon unit is prepared to pay $1.07 billion in cash while the net value of the deal is put at $1.12 billion, including the assumption of Mentor’s debts. The offer equates to $31.00 per share, a 92% premium on Mentor’s closing price on November 28, and J&J says the acquisition will impact earnings per share by $0.03-$0.05.

The response to the deal from analysts has been mostly positive, with most claiming that the price being paid for Mentor, which had sales of $84.5 million for its fiscal second quarter ended September 26, is a reasonable one. J&J said the deal strengthens its presence in aesthetic and reconstructive medicine and observers have suggested that the company is looking to its other divisions to help soften the impact of generic competition to the antipsychotic blockbuster Risperdal (risperidone) and the migraine drug Topamax (topiramate).

On a busy day for Ethicon, the unit announced that it has completed the divestiture of its professional wound care business to One Equity Partners. Financial terms of the transaction are not being disclosed but the business generated sales of approximately $270 million in 2007.

The proposed purchase of Mentor comes just a week after J&J announced plans to acquire Israel’s Omrix Biopharmaceuticals for $438 million, again through Ethicon. Omrix focuses on biosurgical products for the control of bleeding and immunotherapies for the treatment of immune deficiencies and infectious diseases.