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Bausch Health (BHC) moves ahead with eyecare unit spin-off

By Kevin Donovan

16:24, 14 January 2022

By Kevin Donovan

16:24, 14 January 2022

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Bausch + Lomb equipment being used
Bausch Health said investors will be able to value each business independently - Photo: Shutterstock

Bausch Health is moving forward with its planned spin-off of its optical unit Bausch + Lomb unit via a public stock offering in the US and Canada.

The IPO will create two stand-alone companies, Bausch + Lomb, focusing solely on eye health, and Bausch Pharma, focusing on gastroenterology, dermatology and neurology.

The number of shares offered, total proceeds and enterprise value were not disclosed in a registration statement filed Thursday with the US Securities and Exchange Commission.

Bausch Health stock was largely unchanged on the news, trading at $26.98 per share on Friday compared with Thursday’s $26.75 closing share price. Bausch Health trades on the Nasdaq exchange under the ticker BHC. Upon completion of the IPO, Bausch + Lomb will trade on the NYSE and Toronto stock exchanges under the ticker BLCO.

Morgan Stanley and Goldman Sachs are acting as joint lead bookrunning managers.

Company’s history

Canada-based Bausch Health previously announced its intentions to spin off its eye health unit in January 2021. Bausch + Lomb was the founding business of the larger Bausch Health company, founded by John Bausch and Henry Lomb in 1853 as a single optical goods retail outlet selling eyeglasses in rubber frames. 

Bausch + Lomb would go on to produce sunglasses for the US military during World War II and the lens that captured the first satellite image of the moon. Bausch + Lomb created the first mass-produced contact lens in 1971 and received the first patent for a contact lens cleaning solution in 1987.


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Short position overnight fee 0.0018%
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Long position overnight fee -0.0180%
Short position overnight fee 0.0098%
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69.81 Price
+0.790% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee -0.0026%
Overnight fee time 21:00 (UTC)
Spread 0.03

Bausch + Lomb currently sells its visioncare products wholesale to retailers such as LensCrafters and Walmart.

Bausch Health said it believes that creating two stand-alone companies, each with a separate focus, enables investors to value each business independently. Bausch Health had been reporting Bausch + Lomb’s financial performance separately since 1Q 2021.

Financial performance

For the nine months ended 30 September, Bausch + Lomb reported $131m net income on $2.76bn in revenue, down from $191m in net income on $2.47bn in revenue over the previous nine-month period.

Bausch + Lomb has $130m in cash on hand as of 30 September and upon completion of the spin-off will have no debt.

As a wholly owned subsidiary, Bausch Health currently owns 100% of Bausch + Lomb.

Read more: Johnson & Johnson (JNJ) to spin-off consumer health products

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