Valeant buys Bausch + Lomb
Tuesday, May 28 2013 | 00 h 00 min | News
The Quebec pharmaceutical Valeant has acquired Bausch + Lomb, the global leader in eye health, for $8.7 billion.
Half of the payment will go directly to the investor group led by Warburg Pincus, which bought B + L in 2007 for $4.5 billion, while the other half will be used to repay B + L’s outstanding debt. To finance the acquisition, Valeant will issue $2 billion in new equity and borrow the rest.
Valeant will integrate its ophthalmology businesses into the new division, which will retain the name Bausch + Lomb. The pharmaceutical company expects to achieve $800 million in cost savings by 2014. B + L distributes such products as Vision Care, ONEday, PureVision, along with the Besivance, Lotemax, and Ocuvite treatments.
There have been rumours for months that Bausch + Lomb was being sold, but when it came time to discuss potential buyers, names like Abbott Laboratories, Johnson & Johnson, and Sanofi, even Merck & Co and Pfizer, were frontrunners, as ClipInfo.ca reported on January 8, 2013. More recently, in February, Warburg Pincus was considering the initial public offering route to unload B + L, saying it was disappointed in the bids it had received.