TPG and Blackstone eye $14 billion buyout of Bausch + Lomb
- TPG and Blackstone are in talks to acquire Bausch + Lomb for up to $14 billion.
- The sale is part of a strategy to address creditor concerns following Bausch + Lomb's separation from Bausch Health.
- If successful, this acquisition could be one of the largest private equity buyouts of the year.
In October 2024, private equity firms TPG and Blackstone are reportedly pursuing a significant acquisition of Bausch + Lomb, an eye care company based in the United States. This move follows Bausch + Lomb's announcement last month that it was considering a sale as part of a strategy to address creditor concerns related to its separation from Bausch Health Companies. The spin-off was initiated to help alleviate Bausch Health's substantial $21 billion debt, with a third of that amount due by 2027. The acquisition process is expected to value Bausch + Lomb between $13 billion and $14 billion, which translates to a potential per-share price of up to $25. Goldman Sachs is overseeing the sale, which aims to resolve ongoing disputes between Bausch Health's shareholders and creditors. Notably, other potential bidders have withdrawn from the process, leaving TPG and Blackstone as the leading contenders. Bausch + Lomb's enterprise value, including its debt, is estimated at $11.5 billion. The company’s CEO, Brent Saunders, has a history of orchestrating significant deals, including Allergan's $63 billion sale to AbbVie. The formal bidding process is expected to conclude by the end of the month, although the outcome remains uncertain. As of the latest reports, Bausch + Lomb's stock has seen a notable increase, reflecting investor optimism regarding the potential buyout. The situation highlights the ongoing challenges faced by Bausch Health, particularly with its leading drug, Xifaxan, which is set to lose patent protection by 2029.