Chiron Corp. and its wholly owned subsidiary, ChironOphthalmics Inc., said Monday that they will acquireIntraOptics Inc. in a stock deal valued at $40 million.
IntraOptics manufactures and markets intraocular lenses andinstruments for cataract surgeries.
Chiron said the combined product lines would enable thecompany to make "an immediate and significant" impact on thesmall-incision surgery segment of the ophthalmic market inboth the United States and abroad.
The acquisition will also enlarge by fivefold ChironOphthalmics' U.S. field sales force to more than 60 salesrepresentatives. IntraOptics also has 26 international salesand marketing personnel.
Dr. James R. Cook, president, and other key IntraOpticmanagers will join Chiron Ophthalmics, Chiron said.
Chiron will issue 565,000 new shares of common stock(NASDAQ:CHIR) to acquire the privately held Boca Raton, Fla.,company. To reach the predetermined value of $40 million, thenumber of shares was based on the market value of Chironstock in the past 15 days. Chiron stock closed Monday at$70.25, up $2.75.
IntraOptics will post profits of about $1.7 million for calendar1991 on revenues of $27 million, said Chiron spokesman LarryKurtz.
Chiron Ophthalmics of Irvine, Calif., had product sales of $4.2million for the second quarter ended June 30. The company willreport third-quarter results on Oct. 28. Combined 1991 salesfor the two companies will be $43 million, said Kurtz.
The companies expect that the merger, which is subject tocertain conditions and regulatory approvals, will be completedby the end of the year.
-- Karen Bernstein BioWorld Staff
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