Bausch + Lomb Responds to Rumors of a Potential Sale

Rhea-AI Summary

Bausch + Lomb (NYSE/TSX: BLCO) has confirmed it is exploring a potential sale as one of several options to achieve complete separation from Bausch Health Companies Inc. The company's board of directors has authorized management and advisors to explore this possibility, though no transaction is guaranteed. This statement was issued in response to a request from the Canadian Investment Regulatory Organization (CIRO) due to stock volatility concerns related to market rumors. The company stated it will not provide additional details until further disclosure becomes appropriate or necessary.

Positive

• Board authorization to explore potential sale options indicates active pursuit of strategic alternatives
• Company's proactive approach to complete separation from Bausch Health Companies Inc.

Negative

• Uncertainty regarding the outcome of the sale process
• Stock volatility concerns prompting regulatory inquiry

Insights

Financial Analyst

The confirmation of exploring a potential sale marks a significant strategic development for Bausch + Lomb. With a $6.3B market cap, the company's potential sale could attract interest from major healthcare and optical companies looking to expand their eye health portfolio. The move aims to complete the long-awaited separation from Bausch Health Companies Inc., which could unlock shareholder value by establishing BLCO as a pure-play eye health company. The unusual step of confirming sale exploration due to CIRO's request suggests serious market interest and potential deal momentum. However, investors should note the explicit caveat that there's no guarantee of a transaction materializing. The dual-listed status on NYSE and TSX adds complexity to any potential deal structure and regulatory approvals.

Market Research Analyst

This announcement could significantly reshape the global eye health market landscape. Bausch + Lomb's strong brand recognition, established distribution networks and comprehensive product portfolio make it an attractive acquisition target. The timing aligns with increasing market consolidation in the healthcare sector and growing demand for eye health products amid an aging global population. A potential sale could trigger competitive bidding from strategic buyers seeking to strengthen their position in the $30B+ global eye care market. The unusual public confirmation of sale exploration, prompted by regulatory oversight, suggests heightened market speculation and potential buyer interest that warranted official clarification.

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 statement in response to a request from the Canadian Investment Regulatory Organization (CIRO):

“The Bausch + Lomb Board of Directors authorized management and its advisors to explore a potential sale, which is one of several options being explored to complete a full separation from Bausch Health Companies Inc. That process is ongoing, and there can be no assurance that it will result in a transaction.

“While the company normally would not comment on deal negotiations, CIRO requested confirmation of a potential sale process given stock volatility often associated with market rumors. Bausch + Lomb does not intend to provide additional detail until further disclosure is appropriate or necessary.”

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.

© 2024 Bausch + Lomb.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211577704/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

What options is Bausch + Lomb (BLCO) exploring for separation from Bausch Health?

Bausch + Lomb is exploring several options, including a potential sale, to complete its full separation from Bausch Health Companies Inc.

Why did CIRO request confirmation of BLCO's potential sale process?

CIRO requested confirmation due to stock volatility concerns associated with market rumors about the potential sale.

What is the current status of BLCO's potential sale process?

The process is ongoing, but there is no guarantee it will result in a transaction. The company will not provide additional details until further disclosure is appropriate.

Which stock exchanges is Bausch + Lomb (BLCO) listed on?

Bausch + Lomb is dual-listed on both the New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX).