NEW BRUNSWICK, N.J.,
Sept. 16, 2016 /PRNewswire/
-- Johnson & Johnson (NYSE: JNJ) today announced a
definitive agreement to acquire Abbott Medical Optics (AMO), a
wholly-owned subsidiary of Abbott Laboratories, for $4.325
billion in cash. AMO reported sales of $1.1 billion for 2015. The acquisition will
include ophthalmic products in three business segments: cataract
surgery, laser refractive surgery and consumer eye health.
"Eye health is one of the largest, fastest growing and most
underserved segments in health care today," said Ashley
McEvoy, Company Group Chairman, responsible for Johnson &
Johnson's Vision Care Companies. "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."
AMO is a global leader in ophthalmic surgery and is known for
world-class intraocular lenses used in cataract surgery. The World
Health Organization estimates that approximately 20 million people
are blind from age-related cataracts and that there are at least
100 million eyes with compromised visual acuity caused by
cataracts. These numbers are steadily rising due to population
growth and increasing life expectancy.
In addition to the cataract business, AMO has advanced laser
vision (LASIK) technologies designed to enhance surgeon
productivity and correct near sightedness, far sightedness and
astigmatism. The acquisition also includes AMO's consumer eye
health products – over-the-counter drops for dry eye, as well as
multipurpose solutions and hydrogen peroxide cleaning systems for
patients who wear contact lenses.
The transaction is expected to close in the first quarter of
2017 and would be modestly accretive immediately to adjusted
earnings per share*. The closing is subject to antitrust
clearance and other customary closing conditions. Following the
expected closing, sales will be reported in the Medical Devices
segment as a separate platform within Vision Care.
About Johnson & Johnson
Caring for the world one person at a time inspires and unites
the people of Johnson & Johnson. We embrace research and
science - bringing innovative ideas, products and services to
advance the health and well-being of people. Our approximately
127,500 employees at more than 250 Johnson &
Johnson operating companies work with partners in health care
to touch the lives of over a billion people every day, throughout
the world.
About Johnson & Johnson Vision Care, Inc.
Johnson & Johnson Vision Care, Inc. is committed to creating
life-long solutions to vision care needs. Since the
ACUVUE® Brand made its debut in 1987 as the world's first
disposable soft contact lens, the company has repeatedly brought
innovative, quality, and scientific advancements to the industry.
Headquartered in Jacksonville,
Florida, the company has some 3,000 employees worldwide. For
more information, visit www.AcuvueProfessional.com.
* Adjusted earnings per share excludes intangible amortization
expense and special items such as inventory step up, restructuring,
integration, and other costs incurred to execute the
transaction. Adjusted EPS is a non-GAAP financial measure and
should not be considered a replacement for GAAP results.
Cautions Concerning Forward-Looking Statements
This press release contains "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995
regarding the potential acquisition of Abbott Medical Optics. The
reader is cautioned not to rely on these forward-looking
statements. These statements are based on current expectations of
future events. If underlying assumptions prove inaccurate or known
or unknown risks or uncertainties materialize, actual results could
vary materially from the expectations and projections of Johnson
& Johnson. Risks and uncertainties include, but are not limited
to: the satisfaction of closing conditions for the acquisition,
including clearance under the Hart-Scott-Rodino Antitrust
Improvements Act; the possibility that the transaction will not be
completed in the expected timeframe or at all; the potential that
the expected benefits and opportunities of the acquisition, if
completed, may not be realized or may take longer to realize than
expected; uncertainty of commercial success for new or existing
products; economic conditions, including currency exchange and
interest rate fluctuations; competition, including technological
advances, new products and patents attained by competitors; changes
to applicable laws and regulations, including tax laws; and changes
in behavior and spending patterns or financial distress of
purchasers of health care products and services. In addition, if
and when the transaction is consummated, there will be risks and
uncertainties related to the ability of the Johnson & Johnson
Family of Companies to successfully integrate the products and
employees of AMO, as well as the ability to ensure continued
performance or market growth of its products. A further list and
description of these risks, uncertainties and other factors can be
found in Johnson & Johnson's Annual Report on Form 10-K for the
fiscal year ended January 3, 2016,
including in Exhibit 99 thereto, and the company's subsequent
filings. Copies of these filings are available online
atwww.sec.gov, www.jnj.com or on request from Johnson &
Johnson. Johnson & Johnson does not undertake to update any
forward-looking statement as a result of new information or future
events or developments.
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SOURCE Johnson & Johnson