Johnson & Johnson (J&J) has agreed to acquire Abbott Laboratories' subsidiary Abbott Medical Optics (AMO) for around $4.32bn.
Under the deal, J&J will acquire ophthalmic products in three business segments, including cataract surgery, laser refractive surgery and consumer eye health.
AMO produces intraocular lenses used in cataract surgery, as well as laser vision (LASIK) technologies to correct near sightedness, far sightedness and astigmatism.
In addition, the firm produces refractive technologies to treat patients with presbyopia, as well as cataract and spherical aberration.
J&J will also buy AMO’s consumer eye health products such as over-the-counter drops for dry eye, as well as multipurpose solutions and hydrogen peroxide cleaning systems for patients who wear contact lenses.
Subject to antitrust clearance and other customary closing conditions, the deal is expected to complete in the first quarter of 2017.
Johnson & Johnson’s Vision Care Companies group chairman Ashley McEvoy said: “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.”
Abbott chairman and CEO Miles White said: "We've been actively and strategically shaping our portfolio, which has recently focused on developing leadership positions in cardiovascular devices and expanding diagnostics.”
Image: Johnson & Johnson headquarters in New Brunswick, New Jersey. Photo: courtesy of Nikopoley.