Johnson & Johnson buys Abbott Medical Optics for $4.3B

Johnson & Johnson (JNJ) said Friday it is buyingAbbott Medical Optics, an eye-care unit of Abbott Laboratories (ABT), for $4.3 billion in cash.

The deal adds additional ophthalmic products to Johnson & Johnson’s lineup including cataract surgery, laser refractive surgery and consumer eye health. J&J is one of the largest players in the global health care market with a variety of products including consumer products like contact lenses, pharmaceuticals and medical devices.

“Eye health is one of the largest, fastest growing and most underserved segments in health care today,” says Ashley McEvoy, company group chairman at Johnson & Johnson’s vision care unit in a statement. “With the acquisition of Abbott Medical Optics’ strong and differentiated surgical ophthalmic portfolio, coupled with our world-leading … contact lens business, we will become a more broad-based leader in vision care.  Importantly, with this acquisition we will enter cataract surgery – one of the most commonly performed surgeries and the number one cause of preventable blindness.”

This is J&J’s only eyecare deal this year, says S&P Global Market Intelligence. It’s the largest deal with a disclosed amount since its $21 billion buy of Synthes in June, 2012 , which was announced in April, 2011, says S&P Global Market Intelligence.

Shares of J&J fell 16 cents, or 0.1%, to $118.47. Abbott rose 64 cents, or 1.6%, to $41.76.

19 – September – 2016