Bausch and Lomb acquired by Valeant Pharmaceuticals

Bausch and Lomb has announced that it is to be acquired by Valeant Pharmaceuticals, a deal that is expected to be concluded in the third quarter of 2013.

The transaction is worth $8.7 billion (5.78 billion pounds) and will see Bausch + Lomb become a division of Valeant, retaining its name while integrating its new parent company's existing ophthalmology businesses.

It is expected that the deal will establish Valeant as a global leader in eye health, with the new Bausch and Lomb division estimated to generate a pro forma 2013 net revenue total of more than $3.5 billion.

Most of Bausch and Lomb's existing leadership team will join Valeant in new positions, with chief executive officer Brent Saunders to adopt an advisory role to help ensure a seamless transition process.

Mr Saunders said: "Valeant's acquisition of our company is a testament to the tremendous value our talented employees have created over the past several years."

Bausch and Lomb was originally founded in 1853 and employs more than 11,000 people worldwide, having completed its own acquisition of Technolas Perfect Vision earlier this year.