Alcon, the global leader in eye care, has announced its intention to acquire Staar Surgical Company, a leader in refractive surgery using implantable collamer lenses. The acquisition is valued at approximately $1.5 billion in equity value, with Alcon purchasing all outstanding shares of Staar for $28 per share in cash. This represents a 59% premium to Staar’s 90-day volume weighted average price and a 51% premium to the closing price of Staar common stock on August 4, 2025.
The companies have entered into a definitive merger agreement, with Alcon intending to finance the transaction through the issuance of short* and long-term credit facilities. The transaction is expected to be accretive to earnings in year two and is anticipated to close in approximately six to 12 months, subject to customary closing conditions, including regulatory approval and approval by Staar’s shareholders.
Alcon's CEO, David Endicott, emphasized the significance of the acquisition, stating that it enhances their ability to offer a leading surgical vision correction solution for individuals who are not ideal candidates for other refractive surgeries such as LASIK. He also pointed out that the acquisition reinforces their commitment to addressing the most significant needs in eye care, given the projected increase in myopia globally.
Staar's CEO, Stephen Farrell, expressed his belief that the transaction with Alcon represents the best path forward and provides the greatest value for Staar shareholders, particularly in light of fluctuating demand in China over the past two years. The chair of the Staar board of directors, Dr. Elizabeth Yeu, added that the board is committed to maximizing value for shareholders and has determined that the carefully negotiated transaction is in the best interest of Staar shareholders as it delivers immediate and certain value at a significant premium.
Financial advisors and legal advisors have been engaged by both companies, with Morgan Stanley & Co. LLC serving as financial advisor to Alcon and Citi as the exclusive financial advisor to Staar. Furthermore, Staar will not host a conference call in conjunction with its upcoming earnings release, given the pending acquisition by Alcon.
The market has reacted to these announcements by moving the company's shares 45.97% to a price of $26.99. For more information, read the company's full 8-K submission here.
