Global healthcare giant Johnson & Johnson (NYSE: JNJ) said it agreed to acquire Abbott Medical Optics (AMO), a wholly-owned subsidiary of Abbott Laboratories (NYSE: ABT), for $4.325 billion in cash.
AMO reported sales of $1.1 billion for 2015. The acquisition will include ophthalmic products in three business segments: cataract surgery, laser refractive surgery and consumer eye health.
In April, Abbott Labs agreed to acquire St. Jude Medical for $25 billion, creating a premier medical device leader with top positions in high-growth cardiovascular markets.
In February, Abbott Labs agreed to acquire Alere Inc. (NYSE: ALR) for $5.8 billion, significantly advancing its global diagnostics presence and leadership.
“Eye health is one of the largest, fastest growing and most underserved segments in health care today,” said Ashley McEvoy, company group chairman, responsible for Johnson & Johnson’s Vision Care Companies. “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.”
J&J, founded in 1886 and headquartered in New Brunswick, N.J., has 127,500 employees at more than 250 operating companies worldwide. Its subsidiary Johnson & Johnson Vision Care Inc. is a provider of solutions to vision care needs. Since the Acuvue brand made its debut in 1987 as the world’s first disposable soft contact lens, the company has repeatedly brought innovative, quality, and scientific advancements to the industry. Headquartered in Jacksonville, Florida, the company has some 3,000 employees worldwide.
AMO is a global leader in ophthalmic surgery and is known for world-class intraocular lenses used in cataract surgery. The World Health Organization estimates that approximately 20 million people are blind from age-related cataracts and that there are at least 100 million eyes with compromised visual acuity caused by cataracts. These numbers are steadily rising due to population growth and increasing life expectancy.
In addition to the cataract business, AMO has advanced laser vision (Lasik) technologies designed to enhance surgeon productivity and correct near sightedness, far sightedness and astigmatism. The acquisition also includes AMO’s consumer eye health products – over-the-counter drops for dry eye, as well as multipurpose solutions and hydrogen peroxide cleaning systems for patients who wear contact lenses.
The deal is expected to close in the first quarter of 2017, subject to antitrust clearance and other customary closing conditions.
Abbott develops products and technologies that span the breadth of healthcare. With a portfolio of leading, science-based offerings in diagnostics, medical devices, nutritionals and branded generic pharmaceuticals, the company serves people in more than 150 countries and employs approximately 74,000 people. Abbott Laboratories was founded in 1888 and is headquartered in Abbott Park, Illinois.