Updated from 8:31 a.m. EDT
, the eye care unit of food giant
, announced Friday that it will buy laser eye surgery concern
for $892.8 million in cash.
The move gives Alcon entree into the laser eye surgery market, which is fast growing in popularity.
Shares of Summit soared 46%, or 5 7/8, to 18 9/16 in Friday afternoon trading. There was no action in Nestle's American depositary receipts. (Summit finished up 5 13/16, or 46%, to 18 1/2.)
Under the terms of the agreement, Alcon will pay $19 for each outstanding share of Summit. That's a premium of 50% to Summit's closing price Thursday of 12 11/16.
Alcon makes eye care products such as eye drops, contact lens solutions and office systems for opthamologists and optometrists. Meanwhile, Summit, based in Waltham, Mass., develops and manufactures the laser systems used to correct faulty vision. Last year, the company bought
, which develops the lasers used in eye surgery. Summit is the No. 2 maker of eye lasers behind
Fort Worth-based Alcon's name has also been bandied about of late as a possible third party to swoop in and
Wesley Jessen VisionCare
( WJCO) and
. The two contact lens makers agreed to a merger in March only to have
Bausch & Lomb
( BOL) come in days later with an offer for Wesley Jessen alone.