Medical products and drug maker Abbott Laboratories on Monday said it has agreed to purchase Advanced Medical Optics for about $1.36 billion plus debt. Advanced Medical Optics reported $57.1 million debt in September. Total value of the deal is about $2.8 billion, the companies said. By acquiring Advanced Medical Optics, Abbott hopes to expand into the market for eye-care products and laser vision.

 

Abbott Chairman and Chief Executive Miles D. White released a statement saying:  “Through superior vision care technologies and service, Advanced Medical has established itself as a leader in this multi-billion dollar medical device segment. With Advanced Medical, Abbott is enhancing and strengthening its diverse mix of medical device businesses and gaining a leadership position in another large and growing segment.”

 

Advanced Medical Optincs, based in Santa Ana, Calif., is known for its eye care products, along with devices for cataract surgery and laser-vision correction. In fact, the company ranks No. 2 in the cataract surgical device market and No. 3 in contact lens care products.

 

Under terms of the agreement, Abbott will acquire Advanced Medical Optics for $22 per share, which means more than double Friday’s closing price of $8.85.

 

Both companies expect the deal to close in the first quarter of 2009, thus having no significant effect on the next year’s earnings. Abbott said the buyout would add to profit in 2010.