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Warburg Pincus seals purchase of Bausch & Lomb

Private equity firm Warburg Pincus has sealed the acquisition of vision care specialist Bausch & Lomb for USD4.5bn, including about USD830m of debt, with the company’s shareholders rec

Private equity firm Warburg Pincus has sealed the acquisition of vision care specialist Bausch & Lomb for USD4.5bn, including about USD830m of debt, with the company’s shareholders receiving Bausch & Lomb USD65 per share in cash.

‘With a strong and supportive partner in Warburg Pincus, we are well-positioned to create new opportunities for Bausch & Lomb and advance our leadership in the eye health industry,’ says the firm’s chairman and chief executive Ronald Zarrella.

‘Our customers will continue to receive high levels of service, product quality and innovation, and our commitment to serving their needs remains steadfast. On behalf of Bausch & Lomb’s management and board of directors, I want to thank our shareholders and hard-working employees for their support throughout this process.’

Warburg Pincus managing director Elizabeth Weatherman says: ‘We’re delighted to be partners with Bausch & Lomb, a leader in pharmaceuticals. We look forward to helping the company build upon its rich heritage and premier brand in ophthalmology.’

Morgan Stanley acted as financial adviser to the special committee of the Bausch & Lomb board of directors and delivered a fairness opinion. Wachtell Lipton Rosen & Katz acted as legal counsel, while Banc of America, Citi, Credit Suisse and JPMorgan served as financial advisers to Warburg Pincus and arranged the debt financing. Cleary, Gottlieb, Steen & Hamilton was legal adviser to Warburg Pincus.

Bausch & Lomb’s core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. Founded in 1853, the firm is headquartered in Rochester, New York, and employs 13,000 people worldwide.

Warburg Pincus has been a private equity investor since 1971 and currently has some USD20bn in assets under management. Since its establishment, Warburg Pincus has invested USD26bn in 570 companies in 30 countries in sectors including healthcare, consumer and retail, industrial, financial services, energy, real estate, technology, media and telecommunications.

The firm has invested USD4.8bn in healthcare-related companies, including about USD1.5bn in medical devices and USD1.65bn in life science and pharmaceutical companies. Its medical device and pharmaceutical investments include American Medical Systems, ev3, Kyphon, Tornier, Wright Medical Group, the Medicines Company, Zentiva and Harbin Pharmaceutical.

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