Medical devices- Most big pharmaceutical companies have the cash.
Abbott buying Advanced Medical for $2.8B
Business First of Columbus
Abbott Laboratories on Monday said it has agreed to buy an eye-care medical device maker from California for about $2.8 billion in cash and assumed debt.
Abbott Park, Ill.-based Abbott (NYSE:ABT), whose Ross Products division is based in Columbus, will pay $22 a share for Santa Ana-based Advanced Medical Optics. The offer is more than double the $8.85 Friday closing price on Advanced Medical shares.
Advanced Medical is known for the Lasik corrective eye surgery product. The company also has operations in Milpitas, Calif., and Albuquerque, N.M.
Driving the acquisition, Abbott said, is a move to strengthen and diversify the company’s medical devices businesses. Advanced Medical also should help fuel overseas growth, CEO Miles White said.
“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,” White said in a release.
Abbott expects the acquisition of Advanced Medical (NYSE:EYE) won’t add to share earnings this year but will begin contributing in 2010, excluding one-time transaction-related costs.
Abbott expects the deal to close in the first quarter.
Advanced Medical lost $193 million on $1 billion in revenue in 2007.
Abbott has about 68,000 employees, including about 2,000 in Central Ohio, and earned $3.6 billion on $25.9 billion in revenue in 2007.
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