Johnson and Johnson said Friday afternoon it will buy Abbott Laboratories subsidiary Abbott Medical Optics for $4.3 billion in cash. The deal, which is expected to close in the first quarter of 2017, will include ophthalmic products in the company’s cataract surgery, laser refractive surgery and consumer eye health segments. Abbott Medical Optics reported 2015 sales of $1.1 billion. Johnson & Johnson’s Ashley McEvoy said the acquisition was a way to become “a more broad-based leader in vision care,” and described eye health as a large, quickly-growing and underserved health care segment. Johnson & Johnson shares rose 1.5% over the last three months, compared with a 2.8% rise in the S&P 500 . Abbott shares rose 1.3% in late afternoon trade after the deal was announced.
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