Bausch + Lomb Provides Update on Potential Sale

Rhea-AI Summary

Bausch + Lomb (NYSE/TSX: BLCO) has announced that its exploration of potential privatization with a third-party buyer has concluded without resulting in a transaction. The company had previously disclosed this possibility in December 2024 following a regulatory request. Full separation from Bausch Health Companies Inc. remains the company's objective.

The eye health company continues to operate independently and execute its business strategies. Notably, BLCO raised its 2024 revenue guidance on October 30 and will report its fourth-quarter and full-year 2024 earnings on February 19, along with providing guidance for fiscal year 2025.

Positive

• Company raised 2024 revenue guidance in October 2024

Negative

• Failed to secure a buyer for privatization deal
• Remains unseparated from Bausch Health Companies Inc.

Insights

Financial Analyst

The termination of Bausch + Lomb's potential sale process marks a pivotal moment in its complex separation journey from Bausch Health Companies Inc. This development carries several important implications for investors:

Strategic Implications:

• The failed sale process likely indicates a valuation gap between potential buyers' offers and the board's expectations, particularly given BLCO's recent business momentum and raised revenue guidance
• This outcome maintains the status quo of Bausch Health's majority ownership, which has been a source of structural complexity for both entities
• Alternative separation methods may now take precedence, such as a spin-off or special dividend structure, though these would need to address Bausch Health's substantial debt obligations

Market Considerations:

• The timing of this announcement, just ahead of Q4 earnings on February 19, suggests management's confidence in the company's standalone prospects
• The raised revenue guidance for 2024 and upcoming 2025 guidance indicate robust operational performance, potentially strengthening BLCO's negotiating position for future strategic alternatives
• The dual-listed structure (NYSE/TSX) provides liquidity advantages but adds complexity to any future separation scenarios

The emphasis on continuing to pursue full separation, coupled with strong operational execution, suggests management is maintaining a long-term strategic focus while exploring alternative paths to independence. Investors should closely monitor the upcoming earnings report for additional clarity on separation strategies and operational momentum.

VAUGHAN, Ontario--(BUSINESS WIRE)-- Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, issued the following update on a potential sale, which was disclosed in December 2024 following a regulatory request:

“Taking Bausch + Lomb private with a third-party buyer was one of several options being explored to complete a full separation from Bausch Health Companies Inc. After engagement with potential buyers, that process is complete, and will not result in a transaction at this time.

“Full separation remains the goal. Bausch + Lomb continues to operate as its own entity and execute on its strategies and business plan. The company, which raised 2024 revenue guidance on October 30, will report fourth-quarter and full-year 2024 earnings on February 19, in addition to providing guidance for the 2025 fiscal year.”

Bausch + Lomb is traded on both the New York Stock Exchange and Toronto Stock Exchange.

About Bausch + Lomb

Bausch + Lomb is dedicated to protecting and enhancing the gift of sight for millions of people around the world - from birth through every phase of life. Its comprehensive portfolio of approximately 400 products includes contact lenses, lens care products, eye care products, ophthalmic pharmaceuticals, over-the-counter products and ophthalmic surgical devices and instruments. Founded in 1853, Bausch + Lomb has a significant global research and development, manufacturing and commercial footprint with approximately 13,000 employees and a presence in nearly 100 countries. Bausch + Lomb is headquartered in Vaughan, Ontario, with corporate offices in Bridgewater, New Jersey. For more information, visit www.bausch.com and connect with us on X, LinkedIn, Facebook and Instagram.

Forward-looking Statements

This news release may contain forward-looking statements, which may generally be identified by the use of the words “anticipates,” “hopes,” “expects,” “intends,” “plans,” “should,” “could,” “would,” “will,” “may,” “believes,” “estimates,” “potential,” “target,” or “continue” and variations or similar expressions. Forward-looking statements include statements regarding the Separation, including any potential sale of the Company and timing and terms of any such transaction. These statements 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. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in Bausch + Lomb’s filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators (including the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2023 and its most recent quarterly filings). In particular, the Company can offer no assurance that the Separation (including a potential sale) will occur on terms or timelines acceptable to the company or at all. 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. Bausch + Lomb undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

^© 2025 Bausch + Lomb.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206146231/en/

Media Contact:

T.J. Crawford

tj.crawford@bausch.com

(908) 705-2851



Investor Contact:

George Gadkowski

george.gadkowski@bausch.com

(877) 354-3705 (toll free)

(908) 927-0735

Source: Bausch + Lomb Corporation

FAQ

Why did Bausch + Lomb (BLCO) fail to complete its privatization deal in 2024?

After engaging with potential buyers, the process was completed without resulting in a transaction, though specific reasons were not disclosed in the announcement.

When will Bausch + Lomb (BLCO) report its Q4 and full-year 2024 earnings?

Bausch + Lomb will report its fourth-quarter and full-year 2024 earnings on February 19, 2025, along with guidance for fiscal year 2025.

What is the current status of Bausch + Lomb's separation from Bausch Health Companies?

While full separation remains the goal, Bausch + Lomb continues to operate as its own entity but has not yet achieved complete separation from Bausch Health Companies Inc.

Did Bausch + Lomb (BLCO) revise its 2024 revenue guidance?

Yes, Bausch + Lomb raised its 2024 revenue guidance on October 30, 2024.