Laser medical device developer AMO acquired by Abbott in $2.8B deal
January 12, 2009--Global health care and medical research giant Abbott (Abbott Park, IL) today announced a definitive agreement to acquire Advanced Medical Optics (AMO, Santa Ana, CA) AMO, a leader in ophthalmic care. AMO holds the number one position in LASIK laser vision correction surgical devices, the number two position in the cataract surgical device market, and the number three position in contact lens care products.
January 12, 2009--Global health care and medical research giant Abbott (Abbott Park, IL) today announced a definitive agreement to acquire Advanced Medical Optics (AMO, Santa Ana, CA) AMO, a leader in ophthalmic care. AMO holds the number one position in LASIK laser vision correction surgical devices, the number two position in the cataract surgical device market, and the number three position in contact lens care products. The deal, worth ~$2.8 billion, gives Abbott a long-term sustainable growth platform with more than $1 billion in annual sales.
"Through superior vision care technologies and service, AMO has established itself as a leader in this multi-billion dollar medical device segment. With AMO, Abbott is enhancing and strengthening its diverse mix of medical device businesses and gaining a leadership position in another large and growing segment," said Abbott chairman and CEO Miles D. White. "Additionally, Abbott's significant global presence will help drive growth opportunities for this business, especially in international markets, where favorable demographics are driving demand for advanced eye care procedures and products."
Jim Mazzo, chairman and CEO of AMO, will remain president of AMO. "Joining forces with Abbott will fortify our position as a global ophthalmic medical device leader and enhance our ability to serve eye care practitioners and patients around the world."
"With AMO, Abbott will immediately become a global leader in vision," said John M. Capek, executive vice president, Medical Devices, Abbott. "The business is poised for long-term growth, driven by advances in refractive surgery technologies, including LASIK, and an aging global population." Population growth and demographic shifts are increasing demand for advanced vision care technologies across all geographies and age groups. For example, about 60 percent of people older than 60 have cataracts, which are the leading cause of vision loss among this age group. It is estimated that 700 million people globally are 60 years or older, and that number is expected to grow to one billion over the next decade.
Under the terms of the agreement, Abbott will commence a tender offer by Jan. 26, 2009, to purchase all outstanding shares of AMO at $22 per share. The tender offer is conditioned on the tender of a majority of the outstanding shares of AMO's common stock on a fully diluted basis. The $2.8 billion estimated value of the transaction is based on AMO's approximately 62 million fully diluted shares outstanding, plus estimated net debt at the time of closing. The Boards of Directors of AMO and Abbott have approved the transaction. Abbott expects the transaction to be neutral to ongoing earnings per share in 2009, and accretive beginning in 2010, both before one-time transaction-related costs, which will be provided at a later date.
The transaction is subject to customary closing conditions, including antitrust clearances. Abbott and AMO expect the transaction to close in the first quarter of 2009.
News releases and other information are available on Abbott's Web site.
Posted by Barbara G. Goode, email@example.com.