Private equity giants in focus: Acquisition of Bausch + Lomb targeted

Two heavyweights in the private equity sector, TPG and Blackstone, have teamed up to explore a joint bid for the eye care company Bausch + Lomb. Insiders report that, if finalized, this deal could represent one of the largest private equity takeovers of the year. The enterprise value of Bausch + Lomb, including debt, was recently estimated at $11.5 billion. After several private equity funds dropped out of the race, TPG and Blackstone are considered the most promising candidates to take the company private. Both had already expressed interest before Bausch + Lomb went public in 2022; TPG also owns the ophthalmology company BVI Medical. A potential bid could value the enterprise between $13 and $14 billion, equating to a stock value of up to $25 per share. The sale process was initiated by Goldman Sachs to overcome a deadlock with the shareholders of the heavily indebted parent company Bausch Health, which holds 88 percent of Bausch + Lomb shares. Brent Saunders, the well-known dealmaker and CEO of Bausch + Lomb, is involved. He is known for the sale of Allergan to AbbVie for $63 billion. Formal offers from the TPG and Blackstone team are expected by the end of the month. However, it remains uncertain whether the outcome will indeed be a sale. The role of prominent investors like Carl Icahn and John Paulson is also intriguing, with speculation surrounding their use of the sale proceeds. One possible suggestion is to pay out a special dividend after repaying short-term debts. The economic vitality of Bausch Health is affected not least by the looming patent expirations of its flagship product Xifaxan. Nevertheless, the market value of Bausch Health has surged by 26 percent following the announcement of the sale process.