Drea Knufken
The Street reports that Abbott Laboratories (NYSE: ABT) plans to acquire Advanced Medical Optics (NYSE: EYE) for $2.8 billion:
(It is a) $22-a-share transaction price, which includes the assumption of debt at the time of closing. Abbott will begin a tender offer for all outstanding shares on Jan. 26.
“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,” Abbott Chairman and CEO Miles D. White said in a company statement. “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.”
Abbott shares were down 0.8% to $50.76 in Monday morning trading. Advanced Medical Optics shares were up 144.9% to $21.67.
On a global basis, AMO holds the first position in Lasik surgical devices, the second position in the cataract surgical device market and the third position in contact-lens care products.
24/7 Wall Street reports that EYE was the true winner with this deal. A 2007 eye drop recall sullied its reputation; today’s ABT buyout is up 144% to $21.68.
Quite the windfall for the right investors.
