Johnson & Johnson to Acquire Abbott Medical Optics
Johnson & Johnson (NYSE: JNJ – $118.40) announced a definitive agreement to acquire Abbott Medical Optics (AMO), a wholly-owned subsidiary of Abbott Laboratories, for $4.325 billion in cash. The purchase is expected to strengthen J&J’s global leadership in eye health, adding cataract and refractive eye surgery to the company’s Vision Care Portfolio. 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. The transaction, subject to customary conditions and approvals, is expected to close in the first quarter of 2017 and would be modestly accretive immediately to adjusted earnings per share. Following the expected closing, sales will be reported in the Medical Devices segment as a separate platform within Vision Care.
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