Private equity giants TPG and Blackstone are reportedly in the lead to acquire eye care company Bausch + Lomb in a deal potentially worth $13 billion to $14 billion. The acquisition, driven by concerns from Bausch Health’s creditors, could be one of the largest private equity buyouts of the year.
Bausch + Lomb stock jumped 14.5% after reports emerged suggesting the company is considering a sale. While this news fueled optimism, analysts caution investors to remain watchful, as earnings estimate revisions haven’t shown any positive trends.
The Dow Jones Industrial Average gained over 200 points on Monday, while the broader market saw mixed performance. Alcoa Corporation led the gains after announcing a lucrative sale, while Ascendis Pharma, Bausch + Lomb, and Nuvalent also saw significant price increases.
Bausch Health Companies reported disappointing first-quarter results, with revenue and earnings falling short of estimates. The company’s shares came under pressure as investors grappled with concerns over the future of its Xifaxan drug and the delayed monetization of its Bausch + Lomb stake. Management reaffirmed their full-year outlook, but analysts remained cautious due to the ongoing litigation and uncertainty surrounding the Bausch + Lomb separation.
