Bausch & Lomb sold in €3.3bn deal

ONE of the largest multinational companies in Ireland is being sold to a private equity firm in a deal valued at $4.5 billion (€3.3bn).

Eye-care company Bausch & Lomb has agreed to be acquired by affiliates of Warburg Pincus, in a deal that includes the assumption of $830m (€614m) in debt.

Under the terms of the agreement, Warburg Pincus will pay $65 (€48) a share in cash for Rochester-based Bausch & Lomb, who employ about 1,500 people in Ireland. It is not yet known what impact this will have on the Irish market.

Bausch & Lomb is Waterford’s largest employer and in September last year announced the loss of 200 positions.

Last night company management in Waterford said they did not want to comment on the buy-out.

Lead director and chairman of the special committee of the Bausch & Lomb board of directors, William H Waltrip said: “After extensive negotiations and careful and thorough analysis, together with our independent advisers, the special committee and our board have unanimously endorsed this transaction as in the best interest of the company and our shareholders.”

Warburg Pincus managing director, Elizabeth H Weatherman added: “Bausch & Lomb is an exceptional company, with significant potential and a strong commitment to its employees, partners and customers worldwide.”

The transaction is subject to closing conditions, including the approval of Bausch & Lomb’s shareholders, regulatory approvals and the satisfaction of other customary closing conditions. It expected to close promptly following the satisfaction of all closing conditions.

The deal includes the right for Bausch & Lomb to solicit superior offers during the next 50 days. If a better deal is reached during that time, it will pay a $40m (€30m) break-up fee to Warburg Pincus.

The company made a worldwide recall of its popular contact lens solution, ReNu with MoistureLoc last year and was still recalling some product this year. The action resulted in charges of $25m (€21m), as well as $19m (€14m) in lost revenue from returns and rebates.

Going private is the best outcome for Bausch & Lomb, which is facing 344 lawsuits from the MoistureLoc recall, said Jeff Johnson, an analyst at Robert W Baird. Chairman and chief executive of Bausch & Lomb, Ronald L Zarrella said: “We believe this transaction is good for the company’s employees, partners in the eye care profession, and customers, as well as our shareholders.”