Cooper Companies to Buy UK Contact Lens Maker Sauflon

Stephen Levy

July 3, 2014

2 Min Read
Cooper Companies to Buy UK Contact Lens Maker Sauflon

Pleasanton CA-based The Cooper Companies has announced that it has agreed to acquire Sauflon Pharmaceuticals Ltd. of Twickenham, UK, in a transaction valued at about $1.2 billion, thus adding to its portfolio of contact lens offerings.

Sauflon says it is one of only four companies to manufacture both contact lenses and aftercare solutions. It manufactures an extensive range of contact lenses, including the latest generation silicone hydrogel lenses. The company's clariti family of lenses is available in daily disposable and reusable modalities.

Established in 1985, Sauflon has three manufacturing plants and sales offices in 10 countries. Its products are sold in over 50 countries worldwide. Sauflon forecasts revenue of approximately $210 million for its fiscal year ending October 31, 2014, up approximately 22% year-over-year.

Commenting on the transaction, Robert S. Weiss, Cooper's president and chief executive officer, said, "We are extremely pleased to announce this acquisition which gives CooperVision the world's most comprehensive portfolio of daily disposable lenses. CooperVision will now be able to offer a multi-tier daily strategy that includes a full suite of silicone hydrogel and hydrogel lenses, including options within all categories - spheres, torics and multifocals. The daily segment is the fastest growing segment of the soft contact lens market and this transaction positions CooperVision as the premier company in this space."

Cooper operates through two business units, CooperVision and CooperSurgical. CooperVision supplies products for contact lens wearers and provides focused practitioner support, while CooperSurgical supplies women's health clinicians with products and treatment options.

The transaction is subject to regulatory approval and is anticipated to close prior to fiscal year end, October 31, 2014. Excluding one-time charges and deal-related amortization, the transaction is expected to be accretive to earnings per share in fiscal 2015. The acquisition will be financed with off-shore cash and credit facilities.

Stephen Levy is a contributor to Qmed and MPMN.

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