AMO outbids private equity firm for Bausch & Lomb

Advanced Medical Optics has submitted a proposal to acquire Bausch & Lomb for $75 per share, AMO announced in a press release. The proposed transaction, which offers $45 in cash and $30 in AMO stock per share, values Bausch & Lomb at approximately $4.3 billion, according to the release.

The proposal came just hours before the closure of Bausch & Lomb's 50-day "go shop" period, during which the company could entertain buyout offers superior to the one it accepted from global private equity firm Warburg Pincus in mid-May. At that time, Warburg Pincus had offered $65 per share for the company, for a total of $3.67 billion.

In a press release, Bausch & Lomb officials said the AMO offer was bona fide and likely superior, but added that "there can be no assurances as to whether [it would] ultimately result in a transaction." Company officials also said that, under the Warburg Pincus agreement, it could continue to negotiate with AMO despite the end of the "go shop" period.

AMO had announced its interest in acquiring Bausch & Lomb on May 24, but refused to supply additional details until Thursday.

In AMO's press release, chairman, president and CEO Jim Mazzo said, "The AMO and B&L businesses complement each other and together would provide increased scale, scope and the enhanced ability to generate productivity and efficiency improvements."

The cash portion of the offer has been fully committed by Goldman Sachs and would be financed with a combination of bank and public debt, AMO officials said in the release.

Officials from both Bausch & Lomb and AMO indicated they would engage in further discussions regarding the proposal. AMO added that it would not provide any more information until it deemed public comment necessary.