Johnson & Johnson recently announced an agreement to acquire Abbott Medical Optics for $4.325 billion. Abbot Medical Optics, a subsidiary of Abbot Laboratories, reported $1.1 billion in sales in 2015. According to the press release, the acquisition will cover products in areas including cataract surgery, laser refractive surgery, and consumer eye health. Johnson & Johnson Vision Care, Inc. currently produces ACUVUE® brand contact lenses.
Ashley McEvoy, Company Group Chairman responsible for Johnson & Johnson Vision Care stated:
With the acquisition of Abbott Medical Optics’ strong and differentiated surgical ophthalmic portfolio, coupled with our world-leading ACUVUE® 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 acquisition comes shortly after Abbot Laboratories announced the acquisition of St. Jude Medical, Inc., diversifying Abbot Laboratories’ cardiovascular portfolio. Commenting on the sale of Abbot Medical Optics, Miles D. White, Chairman and Chief Executive Officer of Abbot Laboratories, said:
We’ve been actively and strategically shaping our portfolio, which has recently focused on developing leadership positions in cardiovascular devices and expanding diagnostics.
The acquisition is expected to be completed in the first quarter of 2017.