Cooper Cos. acquire Ocular Sciences for $1.2 Billion

In a transaction that would result in the third-largest contact lens company in the world, Cooper Cos. agreed to acquire Ocular Sciences Inc. in a stock and cash deal valued at $44 per share of Ocular, for a total of about $1.2 billion.

The acquisition would combine Ocular Sciences with Cooper's contact lens unit, CooperVision. Cooper said it expects the acquisition to boost its earnings per share beginning in fiscal 2005, excluding accounting and restructuring charges. The company will pay about $600 million in cash at closing, and will issue about 10.3 million shares of its common stock to Ocular shareholders and option holders.

CooperVision is expected to generate fiscal 2004 revenue of about $385 million, while Ocular Sciences expects 2004 revenue of about $345 million.

"Ocular Sciences will add geographic and product line balance and manufacturing technology know-how," said A. Thomas Bender, Cooper's chief executive officer, in a company statement. "We expect to nearly double our revenue base and enhance our cash flow and profitability."

The deal is expected to close in the first quarter of Cooper's 2005 fiscal year. It first must be approved by both company boards and requires shareholder and regulatory approval.