Abbott announces purchase of AMO

Abbott has announced the acquisition of Advanced Medical Optics (AMO).

The agreement will see the company buying AMO for $22 (15 pounds) per share in cash as part of a tender offer on January 26th, with the total value of the deal set to reach $2.8 billion.

Abbott said it expects the transaction to be “neutral” to ongoing earnings per share this year, with accretive beginning in 2010.

Miles White, chairman and chief executive officer of Abbott, said the organisation’s “significant global presence” will allow for growth opportunities, particularly in international markets where eye care procedures and products are in demand.

AMO’s chairman and chief executive officer Jim Mazzo added the deal “underscores the fundamental value of the AMO franchise, the talent and expertise of our global team and the strength of our product offering, pipeline and strategy to provide refractive vision”.

Abbott said a conference call about the transaction will be available on the company’s website.

Last month, the company’s board of directors declared the company’s 340th consecutive quarterly dividend.

The organisation said the amount – of $0.36 per share – was part of the company’s raising of its payout for 36 consecutive years and will be due on February 15th 2009.