Private equity giants Blackstone, Advent International, and TPG are among a host of firms preparing potential bids for eyecare company Bausch + Lomb, as the company initiates a sale process to resolve a stalled spin-off from its heavily indebted parent, Bausch Health, according to a report by the Financial Times.
The report cites sources familiar with the situations as revealing that the auction is gaining interest as Bausch + Lomb seeks a buyer to break the deadlock created by tensions between activist investors and creditors owed $21bn by the parent company.
Bausch + Lomb, which was originally set to be spun off from Bausch Health, formerly known as Valeant, is now up for sale after disputes between creditors and the parent company over its financial health caused the deal to collapse, despite strong support from activist investors.
In addition to Blackstone, Advent, and TPG, private equity firms KKR, CVC Capital, and Hellman & Friedman are also reportedly exploring bids ahead of a soft deadline later this week, according to the FT’s sources. The bidders have already held meetings with Bausch + Lomb’s management team, led by CEO Brent Saunders, who is known for his history of deal-making.
Those interested in making an offer must declare their intent by Friday to stay in the running, the sources said.
However, it’s not guaranteed that the sale process will result in a deal, with Bausch Health also reportedly considering alternatives options, including refinancing some of its substantial debt pile.
Since news of the potential sale broke over the weekend, Bausch + Lomb’s stock price has surged by 19%, valuing its equity at $6.5bn as of Tuesday’s market close.
