Monday was an eventful day for Bausch + Lomb (NYSE: BLCO). The eye care specialist's major piece of internal news was that it earned its latest Food and Drug Administration (FDA) approval. As if that weren't enough, media reports claimed that the company has put itself up for sale. Buffeted by these strong winds, Bausch + Lomb's stock price rose over 7% in the day's trading session.
Eyes on the prize
Of the two news items, the buyout one had the bigger impact. On Monday, the Financial Times reported in separate articles that Bausch + Lomb is exploring a sale, and that large U.S. investment companies Blackstone and TPG are joining forces to come up with a buyout bid.
Citing unnamed "people familiar with the matter," the newspaper wrote that the specialty healthcare company's management is working with advisor Goldman Sachs to gauge interest from potential suitors.
It isn't known whether Bausch + Lomb and/or Goldman is in contact with either Blackstone or TPG. According to the FT, several private equity funds mulling offers have dropped out of the race. The newspaper did not name any of those firms.
The FT's sources said that bids for Bausch + Lomb were expected to range from $13 billion to $14 billion in enterprise value.
FDA approved the company's IOLs
It's likely that Bausch + Lomb's latest news on the regulatory front will at least support a healthy buyout price. The company reported that the FDA has granted approval to the full range of its enVista Envy vision intraocoular lenses (IOLs). These are implanted in the eye to treat cataracts and other vision disorders.
Combined, these latest developments with Bausch + Lomb make the stock one to watch. Investors might want to stay on the sidelines, though, as a company's share price can plummet if buyout rumors don't ultimately play out.
Should you invest $1,000 in Bausch + Lomb right now?
Before you buy stock in Bausch + Lomb, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bausch + Lomb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,069!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of October 14, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Blackstone and Goldman Sachs Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
