Bausch Health Provides Update on Strategic Alternatives
Bausch Health (NYSE/TSX: BHC) has provided an update regarding the potential sale of its Bausch + Lomb subsidiary, which was initially disclosed in December 2024. During the second half of 2024, while exploring liability management alternatives, Bausch + Lomb received an acquisition offer from a private equity firm. However, both companies' boards determined the offer didn't reflect Bausch + Lomb's long-term value and decided not to proceed with the sale.
Bausch Health will maintain its 88% ownership stake in Bausch + Lomb and continue working on liability management alternatives, including new debt financing. The company highlighted strong business performance in 2024, having raised its full-year guidance for revenue, adjusted EBITDA, and adjusted operating cash flow in October 2024. Fourth quarter and full-year 2024 earnings, along with 2025 guidance, will be reported on February 19, 2025.
Bausch Health (NYSE/TSX: BHC) ha fornito un aggiornamento riguardante la potenziale vendita della sua controllata Bausch + Lomb, inizialmente annunciata a dicembre 2024. Durante la seconda metà del 2024, mentre si esploravano alternative di gestione dei debiti, Bausch + Lomb ha ricevuto un'offerta di acquisizione da una società di private equity. Tuttavia, i consigli di amministrazione di entrambe le società hanno determinato che l'offerta non rifletteva il valore a lungo termine di Bausch + Lomb e hanno deciso di non procedere con la vendita.
Bausch Health manterrà la sua partecipazione dell'88% in Bausch + Lomb e continuerà a lavorare su alternative di gestione dei debiti, inclusi nuovi finanziamenti. L'azienda ha evidenziato una forte performance aziendale nel 2024, avendo alzato le previsioni per l'intero anno relative a fatturato, EBITDA rettificato e flusso di cassa operativo rettificato nell'ottobre 2024. I risultati del quarto trimestre e dell'intero anno 2024, insieme alle previsioni per il 2025, saranno resi noti il 19 febbraio 2025.
Bausch Health (NYSE/TSX: BHC) ha proporcionado una actualización sobre la posible venta de su filial Bausch + Lomb, que fue divulgada inicialmente en diciembre de 2024. Durante la segunda mitad de 2024, mientras se exploraban alternativas para la gestión de pasivos, Bausch + Lomb recibió una oferta de adquisición de una firma de capital privado. Sin embargo, las juntas de ambas empresas determinaron que la oferta no reflejaba el valor a largo plazo de Bausch + Lomb y decidieron no proceder con la venta.
Bausch Health mantendrá su participación del 88% en Bausch + Lomb y continuará trabajando en alternativas de gestión de pasivos, incluyendo nuevo financiamiento de deudas. La compañía destacó un sólido desempeño empresarial en 2024, habiendo elevado su guía de ingresos, EBITDA ajustada y flujo de caja operativo ajustado en octubre de 2024. Los resultados del cuarto trimestre y del año completo 2024, junto con las proyecciones para 2025, se reportarán el 19 de febrero de 2025.
Bausch Health (NYSE/TSX: BHC)는 2024년 12월에 처음 발표된 Bausch + Lomb 자회사의 잠재적 매각에 대한 업데이트를 제공했습니다. 2024년 하반기, 부채 관리 대안을 탐색하는 동안 Bausch + Lomb는 사모펀드로부터 인수 제안을 받았습니다. 그러나 양 회사의 이사회는 제안이 Bausch + Lomb의 장기 가치를 반영하지 않는다며 매각을 진행하지 않기로 결정했습니다.
Bausch Health는 Bausch + Lomb에 대한 88%의 지분을 유지하고 새로운 부채 자금을 포함한 부채 관리 대안에 대한 작업을 계속할 것입니다. 회사는 2024년 강력한 비즈니스 실적을 강조하며, 2024년 10월에 연간 수익, 조정된 EBITDA 및 조정된 운영 현금 흐름에 대한 안내를 상향 조정했습니다. 2024년 4분기 및 연간 수익과 2025년 전망은 2025년 2월 19일에 보고될 예정입니다.
Bausch Health (NYSE/TSX: BHC) a fourni une mise à jour concernant la vente potentielle de sa filiale Bausch + Lomb, initialement divulguée en décembre 2024. Au cours de la seconde moitié de 2024, tout en explorant des alternatives de gestion des passifs, Bausch + Lomb a reçu une offre d'acquisition d'une société de capital-investissement. Cependant, les conseils d'administration des deux entreprises ont déterminé que l'offre ne reflétait pas la valeur à long terme de Bausch + Lomb et ont décidé de ne pas donner suite à la vente.
Bausch Health maintiendra sa participation de 88% dans Bausch + Lomb et continuera à travailler sur des alternatives de gestion des passifs, y compris un nouveau financement de la dette. L'entreprise a souligné une forte performance commerciale en 2024, ayant augmenté ses prévisions pour l'année complète en termes de chiffre d'affaires, d'EBITDA ajusté et de flux de trésorerie opérationnels ajustés en octobre 2024. Les résultats du quatrième trimestre et de l'année entière 2024, ainsi que les prévisions pour 2025, seront publiés le 19 février 2025.
Bausch Health (NYSE/TSX: BHC) hat ein Update zum potenziellen Verkauf seiner Tochtergesellschaft Bausch + Lomb gegeben, das ursprünglich im Dezember 2024 bekannt gegeben wurde. In der zweiten Hälfte des Jahres 2024 erhielt Bausch + Lomb, während alternative Möglichkeiten zur Haftungsbewältigung erkundet wurden, ein Übernahmeangebot von einer Private-Equity-Gesellschaft. Die Vorstände beider Unternehmen stellten jedoch fest, dass das Angebot den langfristigen Wert von Bausch + Lomb nicht widerspiegelte, und entschieden, den Verkauf nicht weiterzuverfolgen.
Bausch Health wird seinen 88% Anteil an Bausch + Lomb beibehalten und weiterhin an Möglichkeiten zur Haftungsbewältigung arbeiten, einschließlich neuer Schuldenfinanzierung. Das Unternehmen hob im Jahr 2024 eine starke Geschäftsleistung hervor und hat im Oktober 2024 seine Jahresprognosen für Einnahmen, bereinigtes EBITDA und bereinigten operativen Cashflow angehoben. Die Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 sowie die Prognosen für 2025 werden am 19. Februar 2025 veröffentlicht.
- Company raised full-year guidance for revenue, adjusted EBITDA, and operating cash flow in 2024
- Businesses reported strong performance throughout 2024
- Failed attempt to sell Bausch + Lomb subsidiary
- Company continues to seek liability management alternatives and new debt financing
Insights
The termination of Bausch + Lomb's potential sale process reveals several critical insights for investors. The decision to reject private equity interest, despite being at a 'compelling valuation,' signals management's strong conviction in B+L's intrinsic value and potential for autonomous growth. This stance is particularly noteworthy given the current market dynamics where private equity firms typically aim for opportunistic acquisitions.
The focus on 'liability management alternatives' and new debt financing efforts is crucial, considering Bausch Health's substantial debt position. The company's improved operational performance, evidenced by raised guidance across revenue, adjusted EBITDA and operating cash flow, strengthens its negotiating position for these financial initiatives.
Three key implications emerge:
- The retention of the 88% stake in B+L preserves strategic optionality while maintaining a valuable asset that could be monetized under more favorable conditions
- The emphasis on liability management suggests a shift from structural separation to financial optimization, potentially indicating a more gradual approach to the eventual B+L separation
- The positive business performance trajectory provides a buffer for pursuing strategic alternatives without immediate pressure for suboptimal transactions
The upcoming Q4 and full-year 2024 earnings release on February 19 will be pivotal in validating the company's strategic decisions and setting expectations for 2025. Investors should focus on management's articulation of alternative value creation strategies and specific debt management initiatives, as these will likely drive near-term stock performance.
LAVAL, QC / ACCESS Newswire / February 6, 2025 / Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) (the "Company" or "Bausch Health"), a global, diversified pharmaceutical company enriching lives through a relentless drive to deliver better health outcomes, issued the following update on a potential sale of its subsidiary, Bausch + Lomb Corporation (NYSE:BLCO)(TSX:BLCO), which was disclosed in December 2024 following a regulatory request:
"In the second half of 2024, Bausch Health engaged with its financial advisors to work on various liability management alternatives. At the same time, Bausch + Lomb was approached by a private equity firm with an indication of interest for a potential sale of Bausch + Lomb at a compelling valuation. In light of Bausch Health's desire to complete the full separation of Bausch + Lomb, the Bausch Health and Bausch + Lomb management teams and their boards considered a sale transaction. However, the process did not lead to an offer that reflected Bausch + Lomb's long-term value and the boards determined not to move forward with a sale. The process will not result in a transaction at this time. Bausch Health will continue to own its
Bausch Health, along with its financial and legal advisors, will continue its efforts to work on various liability management alternatives, including raising new debt financing.
Our priority is to continue to improve the performance of our businesses, which have been performing well in 2024 as evidenced by the raise of our full-year guidance for revenue, adjusted EBITDA and adjusted operating cash flow communicated in our last earnings release issued on October 30, 2024. Bausch Health looks forward to reporting fourth quarter and full year 2024 earnings as well as providing guidance for the 2025 fiscal year after market close on February 19, 2025."
Bausch + Lomb has also issued its own press release on this subject.
About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neurology, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.
Forward-looking Statements
This news release may contain forward-looking statements within the meaning of applicable securities laws, including the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by the use of the words "will," "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "subject to" and variations or similar expressions. These statements are neither historical facts nor assurances of future performance, are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, the Company can offer no assurance that the separation (including a potential sale of Bausch + Lomb) will occur on terms or timelines acceptable to the Company or at all, or as to the ultimate composition of any near-term financing activities. Actual results are subject to other risks and uncertainties that relate more broadly to Bausch Health's overall business, including those more fully described in Bausch Health's most recent annual and quarterly reports and detailed from time to time in Bausch Health's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements to reflect events, information or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
Investor Contacts:
Garen Sarafian
ir@bauschhealth.com
(877) 281-6642 (toll free)
Media Contact:
Katie Savastano
corporate.communications@bauschhealth.com
(908) 569-3692
SOURCE: Bausch Health Companies Inc.
View the original press release on ACCESS Newswire
FAQ
Why did Bausch Health (BHC) reject the private equity offer for Bausch + Lomb?
What percentage of Bausch + Lomb does BHC currently own?
When will BHC report its Q4 and full-year 2024 earnings?
What financial alternatives is BHC currently pursuing?
How did BHC perform in 2024 according to the update?
