Bausch + Lomb Explores Sale Options

(Reuters) – Bausch + Lomb is exploring a potential sale among other options, it said on Thursday, in a move that would help Canadian parent Bausch Health exit the eye-care company.

Bausch + Lomb also stated that its announcement was in response to a request from the Canadian Investment Regulatory Organization (CIRO) after media reports about its likely sale caused volatility in its shares.

The Financial Times reported on Oct. 14 that private equity firms TPG and Blackstone (NYSE:BX) are working on a joint bid to take the company private for up to $11.5 billion, including debt.

A month earlier, the FT had reported that the company hired an investment bank to explore a sale, sending its shares surging more than 37%. However, the stock price sharply fell after the newspaper reported on Blackstone's cooling interest earlier this week.

A sale could conclude a lengthy process by parent Bausch Health to divest its stake in the eyecare company. In 2022, Bausch Health separated the business into a publicly listed company but retained a majority stake.

Bausch + Lomb, one of the world's largest contact lens suppliers, is led by dealmaker Brent Saunders, previously CEO of Allergan (NYSE:AGN) before its sale to AbbVie (NYSE:ABBV) for $63 billion. The company also produces surgical devices, prescription drugs, and generic eye products.