1-800-Contacts Taken Out

Fenway Partners will pay $340 million for the company.
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agreed to be acquired by private-equity firm Fenway Partners in a $340 million deal.

Fenway will pay $24.25 a share for the deliverer of contact lenses. The price represents a 21% over 1-800-Contacts' closing price of $20.08 Friday.

Shares of 1-800-Contacts recently were surging $4.12, or 20.5%, to $24.20.

"We believe this transaction with Fenway Partners is the right decision for our stockholders, our company, our employees, and our customers," said 1-800-Contacts Chairman and CEO Jonathan Coon. "This transaction will not only provide significant premium value for our stockholders, but will allow the company to pursue its long-term goals with the flexibility and long-term focus of a private company."

The transaction is expected to close in the second half of the year.

The deal comes less than a week after 1-800-Contacts agreed to sell its ClearLab business, which makes contact lenses and distributes them overseas.

The company sold ClearLab's flat-pack technology and certain other intellectual property to Menicon, Japan's largest independent contact lens manufacturer. ClearLab's manufacturing, distribution and customer support operations were sold to Mi Gwang Contact Lens Co., a Korean-based contact lens manufacturer.

The Fenway buyout isn't contingent on the closing of the ClearLab deals.