2013 Medtech M&A Review: Eye-Popping Vision Care Transactions

Valeant Pharmaceutical International, Essilor, and Abbott Labs made big plays in the vision care space.

By Clyde A. Burkhardt

The second largest transaction in 2013 was Valeant Pharmaceutical International’s acquisition of Bausch & Lomb Holdings Inc., a leading producer of a variety of vision care products including contact and intraocular lenses and surgical equipment, for $8.6 billion (2.6x sales of $3.5 billion, and 12.1x EBITDA of $720 million). The seller was private equity firm Wurburg Pincus, which had acquired Bausch & Lomb Holdings in 2007 for $4.5 billion.

Another major vision care transaction was the acquisition by Essilor, the world’s largest ophthalmic lens maker, of a 51% controlling stake in Transitions Optical from diversified PPG. Transitions is the inventor of variable–tint plastic lenses and makes polarizing lenses that adapt to changing light and block harmful solar rays. The company had been a joint venture between PPG and Essilor, with Essilor having a 49% interest. The transaction will help Essilor boost expansion in the variable-tint lens market, which is growing twice as fast as the optical industry as a whole. The price for the 51% interest was $1.7 billion.

Abbott Labs also entered the eye-care M&A picture with the acquisition of privately held OptiMedica, a producer of an innovative line of laser cataract surgery devices, for $400 million.

Clyde A. Burkhardt is senior managing director of HT Capital Advisors LLC (New York City), a private investment banking firm. He leads HT Capital Advisors' groups focusing on the medical device, healthcare services, and precision component industries. Contact Burkhardt at [email protected].