Bausch and Lomb announces privatisation merger agreement

Bausch & Lomb has announced the signing of a definitive merger agreement with affiliates of international private equity form Warburg Pincus. This transaction to privatise the firm has been valued at approximately $4.5 billion (2.25 million pounds), including around $830 million of debt.

According to the terms of the merger agreement, Warburg Pincus affiliates will purchase the outstanding common stock of Bausch & Lomb for the cash price of $65 per share, with this offer being unanimously approved by the company’s board of directors.

This merger is expected to be closed “promptly” by both parties, while it is subject to standard conditions, including approval from the relevant regulatory bodies and consent from the shareholders of Bausch & Lomb.

Ronald L Zarella, chairman and chief executive officer of Bausch & Lomb, said: “We believe this transaction with Warburg Pincus is good for the company’s employees, partners in the eye care profession and customers, as well as our shareholders.”

He added that private status will enable Bausch & Lomb to have increased flexibility to better focus on its long-term business plans and become a global leader in the eye health innovative technology sector.

In March 2007, Bausch & Lomb announced the appointment of Efrain Rivera as senior vice-president and chief financial officer of the company, with his promotion to become effective at the end of June this year.