Bausch + Lomb Sale Process Gains Momentum As TPG And Blackstone Join Forces

Private equity firms TPG and Blackstone are joining forces in a bid to acquire eye care company Bausch + Lomb BLCO, the Financial Times reported.

Last month, Bausch + Lomb said it was considering a sale.

The auction is part of an effort to address concerns from creditors, including Apollo Global Management Inc APO,  over the separation from parent company, Bausch Health Companies BHC..

The Bausch + Lomb spin-off was part of Bausch Health’s plan to alleviate its $21 billion debt, a third of which is due by 2027.

If TPG and Blackstone are successful, the deal could rank among the largest private equity buyouts of the year. Bausch + Lomb’s enterprise value, including debt, amounts to $11.5 billion.

Other potential bidders are no longer in the running, positioning TPG and Blackstone as the front-runners.

The acquisition process is expected to value Bausch + Lomb at $13 billion to $14 billion, translating to a per-share price of up to $25.

Goldman Sachs is leading the sale process to end a feud between Bausch Health's shareholders and creditors.

Bausch + Lomb CEO Brent Saunders orchestrated Allergan’s $63 billion sale to AbbVie Inc ABBV. Formal bids are expected by the end of the month, though no deal is guaranteed.

Bausch Health's top shareholders, including Carl Icahn and John Paulson's Paulson & Co., had supported the spin-off, seeing potential benefits in owning a larger share of the more profitable eye care subsidiary.

Bausch Health currently faces challenges with its leading drug, Xifaxan, which will lose patent protection by 2029.

Price Action: Bausch + Lomb stock is up 10.7% at $21.55 during the premarket session at last check Monday.

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