:max_bytes(150000):strip_icc()/GettyImages-1395609688-8c16d507bfa74a96a48bf96915f6a468.jpg "Bausch + Lomb Stock Jumps Amid Reports Of A Sale")
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Key Takeaways
- Bausch + Lomb is discussing a possible sale that would separate it from its parent company, Bausch Health Cos.
- Bausch Health is saddled with debt of $21 billion, nearly $10 billion of which is set to mature in 2027.
- In July, Bausch Health pushed back against a research firm’s report that said it was mulling bankruptcy options.
Bausch + Lomb (BLCO) shares popped Monday following a report that the eyecare company is considering a sale.
The contact lens producer is working with Goldman Sachs (GS) on a deal that would see it separated from its severely indebted parent Bausch Health Cos. (BHC), the Financial Times reported Saturday. Bausch + Lomb was spun off from Bausch Health in 2022.
Bausch + Lomb’s enterprise value including debt was at just over $10 billion as of the market close Friday, the report said.
Bausch Health Would Need to Pass Solvency Test Before Divestment Can Be Approved
Bausch Health has $21 billion in debt following a string of takeovers, with $10 billion coming due by the end of 2027, the report added.
However, since Bausch + Lomb is a key revenue-generating subsidiary, the parent firm would have to pass a solvency test before a sale of the contact lens producer can be approved.
In July, Bausch Health pushed back against a research firm’s report saying it was mulling bankruptcy options.
Shares of Bausch + Lomb rose nearly 14% intraday Monday, and Bausch Health stock climbed 6%.