The Cooper Companies, Inc. (NYSE:COO) today announced that
CooperVision has acquired Paragon Vision Sciences, a leading
provider of orthokeratology (ortho-k), specialty contact lenses and
oxygen permeable rigid contact lens materials. The
transaction is valued at approximately $80 million and is expected
to be neutral to earnings per share in fiscal 2018 excluding
one-time charges and deal-related amortization. Paragon had
trailing twelve month revenues of approximately $15 million and is
forecasted to grow low double digits over the coming years.
Commenting on the transaction, Robert S. Weiss, Cooper’s
president and chief executive officer said, “The acquisition of
Paragon strengthens CooperVision’s industry-leading specialty lens
business through the addition of several successful products which
will be a great fit within our existing product portfolio.”
About The Cooper Companies
The Cooper Companies, Inc. ("Cooper") is a global medical device
company publicly traded on the NYSE (NYSE:COO). Cooper is dedicated
to being A Quality of Life Company™ with a focus on delivering
shareholder value. Cooper operates through two business units,
CooperVision and CooperSurgical. CooperVision brings a refreshing
perspective on vision care with a commitment to developing a wide
range of high-quality products for contact lens wearers and
providing focused practitioner support. CooperSurgical is committed
to advancing the health of families with its diversified portfolio
of products and services focusing on women’s health, fertility and
diagnostics. Headquartered in Pleasanton, CA, Cooper has more than
10,000 employees with products sold in over 100 countries. For more
information, please visit www.coopercos.com.
About Paragon Vision Sciences
Paragon Vision Sciences ("Paragon"), headquartered in Gilbert,
Arizona, specializes in orthokeratology (ortho-k) contact lenses,
specialty contact lenses and oxygen permeable rigid contact lens
materials. Paragon’s CRT© (Corneal Reshaping Therapy) is used
for myopia management helping correct nearsightedness without the
daytime use of contact lenses or glasses. CRT lenses are worn
at night, and correct the curvature of the cornea while sleeping so
patients can see clearly during the day. CRT is sold in more
than 50 countries and has been sold in the U.S. since 2002. For
more information, visit www.paragonvision.com.
Forward-Looking Statements
This press release contains "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of
1995. Statements relating to guidance, plans, prospects,
goals, strategies, future actions, events or performance and other
statements that are other than statements of historical fact,
including all statements regarding the acquisition of Paragon
including financial position, market position, product development
and business strategy, expected cost synergies, expected timing and
benefits of the transaction, difficulties in integration entities
or operations, as well as estimates of our and Paragon’s future
expenses, sales and diluted earnings per share are forward looking.
In addition, all statements regarding anticipated growth in our
revenue. To identify these statements look for words like
"believes," "expects," "may," "will," "should," "could," "seeks,"
"intends," "plans," "estimates" or "anticipates" and similar words
or phrases. Forward-looking statements necessarily depend on
assumptions, data or methods that may be incorrect or imprecise and
are subject to risks and uncertainties.
Among the factors that could cause our actual results and future
actions to differ materially from those described in
forward-looking statements are: adverse changes in the global or
regional general business, political and economic conditions,
including the impact of continuing uncertainty and instability of
certain countries that could adversely affect our global markets,
and the potential adverse economic impact and related uncertainty
caused by these items, including but not limited to, the United
Kingdom’s election to withdraw from the European Union; foreign
currency exchange rate and interest rate fluctuations including the
risk of fluctuations in the value of foreign currencies or interest
rates that would decrease our revenues and/or earnings; our
indebtedness and associated interest expense could adversely affect
our financial health, prevent us from fulfilling our debt
obligations or limit our ability to borrow additional funds;
changes in tax laws or their interpretation and changes in
statutory tax rates, including but not limited to, the United
States and other countries with proposed changes to tax laws, some
of which may affect our taxation of earnings recognized in foreign
jurisdictions and/or negatively impact our effective tax rate;
acquisition-related adverse effects including the failure to
successfully obtain the anticipated revenues, margins and earnings
benefits of the Paragon acquisition, integration delays or costs
and the requirement to record significant adjustments to the
preliminary fair value of assets acquired and liabilities assumed
within the measurement period, required regulatory approvals for
the Paragon acquisition not being obtained or being delayed or
subject to conditions that are not anticipated, adverse impacts of
changes to accounting controls and reporting procedures, contingent
liabilities or indemnification obligations, increased leverage and
lack of access to available financing (including financing for the
acquisition or refinancing of debt owed by us on a timely basis and
on reasonable terms); a major disruption in the operations of our
manufacturing, research and development or distribution facilities,
due to technological problems, including any related to integration
of the Paragon acquisition, natural disasters, system upgrades or
other causes; a major disruption in the operations of our
manufacturing, accounting and financial reporting, research and
development or distribution facilities due to technological
problems, including any related to our information systems
maintenance, enhancements or new system deployments, integrations
or upgrades; disruptions in supplies of raw materials, including
but not limited to, components used to manufacture our silicone
hydrogel lenses; new U.S. and foreign government laws and
regulations, and changes in existing laws, regulations and
enforcement guidance, which affect areas of our operations
including, but not limited to, those affecting the health care
industry including the contact lens industry and the medical device
industry; compliance costs and potential liability in connection
with U.S. and foreign laws and health care regulations pertaining
to privacy and security of third party information, including but
not limited to product recalls, warning letters, and data security
breaches; legal costs, insurance expenses, settlement costs and the
risk of an adverse decision, prohibitive injunction or settlement
related to product liability, patent infringement or other
litigation; limitations on sales following product introductions
due to poor market acceptance; new competitors, product innovations
or technologies, including but not limited to, technological
advances by competitors, new products and patents attained by
competitors, and competitors' expansion through acquisitions;
reduced sales, loss of customers and costs/expenses related to
recalls; failure to receive, or delays in receiving, U.S. or
foreign regulatory approvals for products; failure of our customers
and end users to obtain adequate coverage and reimbursement from
third-party payors for our products and services; the requirement
to provide for a significant liability or to write off, or
accelerate depreciation on, a significant asset, including
goodwill, and idle manufacturing facilities and equipment; the
success of our research and development activities and other
start-up projects; dilution to earnings per share from the Paragon
acquisition or other acquisitions or issuing stock; changes in
accounting principles or estimates; environmental risks; and other
events described in our Securities and Exchange Commission filings,
including the “Business” and “Risk Factors” sections in the
Company’s Annual Report on Form 10-K for the fiscal year ended
October 31, 2016, as such Risk Factors may be updated in quarterly
filings.
We caution investors that forward-looking statements reflect our
analysis only on their stated date. We disclaim any intent to
update them except as required by law.
COO-G
Source: The Cooper Companies, Inc.
CONTACT:
Kim DuncanVice President, Investor Relationsir@cooperco.com
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