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Advanced Medical Optics purchased by Abbott
The Santa Ana-based company sold for $2.8 billion, 150 percent more than what it was worth Friday.
By Kristen SchottPublished: January 12, 2009 09:03 AM
Advanced Medical Optics, an eye care product manufacturer, was bought by Illinois-based Abbott Laboratories for $2.8 billion. The health care company paid about $1.4 billion, plus another $1.4 billion of Advanced Medical Optics' debt, to expand its eye-care offerings and laser vision correction services.
The deal is one of the largest in Orange County in the past year – in 2007, Italy's Luxottica Group SPA paid $2.1 billion for Foothill Ranch-based Oakley.
Abbott offered $22 per share, which is more than double the company's Friday closing price of $8.85. Shares of Advanced Medical Optics opened up about 150 percent on Monday, with a market value of $450 million.
Both companies approved the deal, which is expected to close early this year. Abbott believes the buyout will have no significant effect on earnings in 2009 and will add to the company's profits during 2010.
Besides eye-care products, Advanced Medical Optics develops three different segments of ophthalmic care: cataract surgery, laser vision correction (LASIK) and eye care products such as contact lens solution. The company is the leader in laser surgical devices, No. 2 in the cataract surgery device market and No. 3 in contact lens care products.
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The deal is one of the largest in Orange County in the past year – in 2007, Italy's Luxottica Group SPA paid $2.1 billion for Foothill Ranch-based Oakley. Abbott offered $22 per share, which is more than double the company's Friday closing price of $8.85. Shares of Advanced Medical Optics opened up about 150 percent on Monday, with a market value of $450 million. Both companies approved the deal, which is expected to close early this year. Abbott believes the buyout will have no significant effect on earnings in 2009 and will add to the company's profits during 2010. Besides eye-care products, Advanced Medical Optics develops three different segments of ophthalmic care: cataract surgery, laser vision correction (LASIK) and eye care products such as contact lens solution. The company is the leader in laser surgical devices, No. 2 in the cataract surgery device market and No. 3 in contact lens care products. Related headlines OC METRO Minute Jan. 7: Cameron Health runs clinical trial OC METRO Minute Dec. 29: FDA approves eyelash product from Allergan Advanced Medical Optics' product receives FDA approval Allergan, Clinique pair up for healthy skin Allergan aims to stop migraines with BOTOX Advanced Medical Optics partners with Institute for Eye Research |
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