Johnson & Johnson has announced an all-cash deal to acquire Abbott Medical Optics, a wholly-owned subsidiary of Abbott Laboratories, for $4.33bn. AMO, which reported sales of $1.1bn in 2015, is a global leader in ophthalmic surgery and is known for intraocular lenses used in cataract surgery.
The deal includes ophthalmic products in three business segments – cataract surgery, laser refractive surgery, and consumer eye health. It also includes AMO’s consumer eye health products – OTC drops for dry eye, as well as multipurpose solutions and hydrogen peroxide cleaning systems for contact lenses.
J&J noted: “Eye health is one of the largest, fastest growing and most underserved segments in health care today. With the acquisition of Abbott Medical Optics’ strong and differentiated surgical ophthalmic portfolio, coupled with our world-leading ACUVUE contact lens business, we will become a more broad-based leader in vision care. Importantly, with this acquisition we will enter cataract surgery – one of the most commonly performed surgeries and the number one cause of preventable blindness.”
The deal, which is expected to be completed in the first quarter of 2017, is expected to slightly add to J&J’s adjusted earnings per share. It is subject to regulatory approval.