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Abbott Deal Boosts Advanced Medical Optics

Updated from 10:09 a.m. EST

Abbott Laboratories (ABT) on Monday said it would acquire laser eye-surgery device maker Advanced Medical Optics (EYE) in a deal valued at $2.8 billion.

The $22-a-share transaction price, which includes the assumption of debt at the time of closing. Abbott will begin a tender offer for all outstanding shares on Jan. 26.

Abbott expects a 2009 profit of between $3.65 and $3.70 a share, factoring in the deal. Analysts polled by Thomson Reuters expect a profit of $3.66 a share. Before one-time transaction-related costs, Abbott expects no impact to earnings per share in 2009, and believes the deal will be accretive beginning in 2010. Transaction costs will be disclosed at a later date.

"With AMO, Abbott is enhancing and strengthening its diverse mix of medical device businesses and gaining a leadership position in another large and growing segment," Abbott Chairman and CEO Miles D. White said in a company statement. "Additionally, Abbott's significant global presence will help drive growth opportunities for this business, especially in international markets, where favorable demographics are driving demand for advanced eye care procedures and products."

Abbott shares closed down 2.2% to $50.06. Advanced Medical Optics shares were up 142.9% to $21.50.

Stock quotes in this article: ABT, EYE 
This article was written by a staff member of TheStreet.com.

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