Bausch & Lomb to Be Sold to Warburg for $3.67 Billion |
| Bloomberg - May 16, 2007 |
Bausch & Lomb Inc., the eye-products maker rocked a year ago when its contact-lens cleaner was recalled, agreed to be bought by the private equity firm Warburg Pincus for $3.67 billion in cash.
Warburg Pincus will pay $65 a share and assume about $830 million in debt, the companies said today in a statement. The amount exceeds yesterday's closing price by 5.7 percent. The agreement includes a $40 million breakup fee. Bausch & Lomb's shares rose 9.5 percent, or $5.81, to $67.31 after the company said it will continue to seek proposals.
Bausch & Lomb, based in Rochester, New York, recalled the lens cleaner ReNu with MoistureLoc in 2006 after it was linked to a potentially blinding eye infection. The recall resulted in charges of $25 million, as well as $19 million in lost revenue from returns and rebates. The company has also been restating its financial results since 2000 because of accounting misconduct and has delayed filings with U.S. regulators.
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- Posted: 2007-05-16 10:40:36
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