Johnson & Johnson To Acquire Abbott's Vision Care Business For $4.33 Bln

(RTTNews) - Johnson & Johnson (JNJ) announced a definitive agreement to acquire Abbott Medical Optics, a subsidiary of Abbott Laboratories, for $4.325 billion in cash. Abbott Medical Optics is a global leader in ophthalmic surgery and is known for world-class intraocular lenses used in cataract surgery. The acquisition will include ophthalmic products in three business segments: cataract surgery, laser refractive surgery and consumer eye health.

Abbott Medical Optics reported sales of $1.1 billion for 2015. Johnson & Johnson said the deal is expected to close in the first quarter of 2017 and would be modestly accretive immediately to adjusted earnings per share.

Ashley McEvoy, company Group Chairman, responsible for Johnson & Johnson's Vision Care Companies, said: "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."

Separately, Abbott stated that the net impact of this transaction is not expected to impact the company's overall targeted ongoing earnings per share in 2017. The company noted that the targeted earnings per share excludes the expected gain and any costs related to the transaction.

"We've been actively and strategically shaping our portfolio, which has recently focused on developing leadership positions in cardiovascular devices and expanding diagnostics," said Miles White, chairman and CEO, Abbott.