Alcon to Buy Staar for $1.5 Billion in Vision Surgery Expansion

(Bloomberg) — Alcon Inc. agreed to buy Staar Surgical Co. for about $1.5 billion, giving the Swiss eye-care firm access to a new vision-correction treatment.

The company will pay $28 per share of Staar in cash, a 51% premium to Monday’s closing price, according to a statement. Alcon plans to raise debt to finance the purchase, which is expected to contribute to earnings growth in its second year.

The deal is the largest by Alcon since it was spun off from Novartis AG in 2019, according to data compiled by Bloomberg. Alcon shares fell as much as 0.4% Tuesday, bringing this year’s decline to 7.9%.

California-based Staar offers vision-correction solutions called Implantable Collamer Lenses, or ICLs, which can be implemented through a minimally invasive procedure.

“With the number of high myopes rising globally, the acquisition of Staar enhances our ability to offer a leading surgical vision correction solution for those who are not ideal candidates for other refractive surgeries,” Alcon Chief Executive Officer David Endicott said.

Alcon is adding “an innovative product in a growing market, where their commercial size will be an advantage to scale the product,” Bernstein analysts including Susannah Ludwig said in a note, adding the company will need to invest significantly to expand in the segment. Staar’s lenses are complimentary to Alcon’s wavelight laser offering, targeting patients with different myopia prescriptions, they said.

Staar posted a wider-than-expected loss of $57.4 million in the first quarter while pulling its outlook, blaming uncertainty around tariffs and challenges in China. Its shares are down 24% so far this year.

“Fluctuating demand in China over the past two years has continued to create significant headwinds for STAAR as a standalone company,” Staar Chief Executive Officer Stephen Farrell said in the statement.

The boards of both companies approved the transaction, which is expected to close in six to 12 months.

–With assistance from Lisa Pham.

(Updates with shares, analyst and CEO comments from third paragraph.)

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