Optometry in the spotlight as private equity firms eye $11.5bn Bausch + Lomb deal

October 14, 2024 (Preqin News) – Shares in Canada-based eyecare company Bausch + Lomb rose on news that private equity firms Blackstone and TPG are planning a joint bid to acquire the NYSE-listed company for an enterprise value of $11.5bn, including debt, as reported by the Financial Times, which cited ‘people familiar with the matter.’

The optometry sector has been a fertile niche for private equity investors, with 313 deals completed worldwide with a combined value of $17.0bn since 2019, according to Preqin data. In line with the broader deal-making slowdown, investment in optometry companies has fallen from a peak of 81 deals with a value of $5.2bn in 2021 to 29 with a value of $718.4mn in 2023.

Companies that provide services and products for treating optical issues in children, adults, and the elderly have attracted $434.2mn in 26 private equity deals year to date, dominated by the US with 18 transactions.

VCs have also invested $587.2mn in 55 rounds so far this year to innovative start-ups reshaping the vision of eye health, including developing novel soft contact lenses and glasses, and a company providing AI-based remote assessment of retinal diseases.

Aging populations are driving market growth, according to research from FTI Consulting. In the US, for example, the 65+ population is projected to make up approximately 21% of the total US population by 2030, with growth highest for the 75-84 cohort, a compound rate of growth of 4.5%, followed by the 85+ (2.8%) and 65-74 (1.9%) cohorts.

As the number of age-related conditions such as cataracts, far-sightedness, diabetic retinopathy, glaucoma, and macular degeneration increases, coupled with raising eye health awareness and higher screen time, the demand for optometric services and eyecare will increase.

A deal for Bausch + Lomb would be a step-change for the sector, and a boost for private equity deal-making as a whole.

At the mooted $11.5bn valuation, a deal would be the second-largest buyout of 2024, behind the $13.0bn deal for sports media group Endeavor, backed by Goldman Sachs Asset Management, Lexington Partners, DFO Management, Mubadala Investment Company, and Silver Lake.

Blackstone and TPG declined to comment on the story.

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}