Bausch Health puts Bausch + Lomb sale on ice
On February 6, Bausch Health Companies announced that it would continue to own 88% of Bausch + Lomb. Previously, Bausch Health’s management and Bausch + Lomb’s leadership had explored a potential sale after a private equity firm expressed interest in acquiring the eye health subsidiary at an attractive valuation. The process did not result in an offer that reflected Bausch + Lomb’s long-term value, leading the boards to decide against moving forward with the sale. Despite this, both companies reaffirmed their commitment to a full separation in the future.
Following the announcement, the stock prices of both companies dropped by just over 10%. Given Bausch Health’s significant debt burden of more than $20 billion, the company is now exploring alternative financing options, including raising new debt.
In November, Bausch + Lomb slightly raised its guidance for fiscal year 2024. The company expects annual revenue growth of 16–18%, reaching between $4.725 billion and $4.825 billion, with an adjusted EBITDA margin of 18.3% at the midpoint of its forecast. Fourth-quarter and full-year results for 2024, along with guidance for 2025, are set to be released on February 19.
