Abbott completes takeover of Advanced Medical Optics
2 March 2009
Abbott (NYSE:ABT) has announced that it has completed its acquisition
of Advanced Medical Optics (AMO), which is now a wholly owned subsidiary
of Abbott with the new name Abbott Medical Optics Inc.
The acquisition of AMO enhances and strengthens Abbott's diverse mix
of medical device businesses and gives it a leadership position in the
large and growing eye care market. Abbott Medical Optics holds the
number one position in LASIK surgical devices, the number two position
in the cataract surgical device market and the number three position in
contact lens care products.
Abbott's stock price fell last week and on opening today reached a
52-week low of 45.39. It is now around the price it was in mid January
after peaking at around 57 in early February. Last week Abbott increased
its quarterly common dividend by 11% to 40 cents per share, the 37th
consecutive year it has increased its dividend payout.
"As with previous acquisitions that have strengthened and diversified
our business, we're entering a market that's aligned with demographic
trends and growing medical need," said John M Capek, executive vice
president, Medical Devices, Abbott. "This acquisition provides Abbott
access to a $22 billion global market and the opportunity to help a very
large patient population."
The final step in the acquisition process was a short-form merger of
Rainforest Acquisition Inc., a wholly owned subsidiary of Abbott, with
and into Advanced Medical Optics, Inc.
As a result of the merger, all outstanding shares of AMO common stock
not tendered in the cash tender offer (other than those as to which
holders properly exercise dissenters' rights) were converted into the
right to receive $22 per share in cash, without interest and subject to
any required withholding taxes.
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