By Lisa Kerner
Charlotte, N.C., Jan. 12 - Abbott Laboratories and Advanced Medical Optics, Inc. will combine in a transaction valued at $2.8 billion, including net debt.
According to Abbott, it will begin a $22-per-share cash tender offer for Advanced Medical Optics' shares by Jan. 26.
The boards of directors of both companies approved the transaction, which is expected to close in the first quarter of 2009.
Abbott believes the transaction will be neutral to ongoing earnings per share in 2009 and accretive beginning in 2010, both before one-time transaction-related costs.
"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," Advanced Medical Optics chairman and chief executive officer Jim Mazzo said.
Mazzo will remain with Abbott as president of Advanced Medical Optics.
Abbott executive vice president, medical devices, John M. Capek said the vision business is "poised for long-term growth, driven by advances in refractive surgery technologies, including Lasik (laser vision correction), and an aging global population."
Santa Ana, Calif.-based Advanced Medical Optics operates in three segments: cataract surgery, Lasik and eye-care products.
Abbott is a biopharmaceutical company located in Abbott Park, Ill.
| Acquirer: | Abbott Laboratories
|
| Target: | Advanced Medical Optics, Inc.
|
| Announcement date: | Jan. 12
|
| Transaction total: | $2.8 billion
|
| Price per share: | $22.00
|
| Expected closing: | First quarter of 2009
|
| Stock price for target: | NYSE: EYE: $8.85 on Jan. 9
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