Nestlé's Alcon Enters a New Field in Ophthalmic Surgery

Back to Press releasesVevey,May 26, 2000

Alcon, the pharmaceutical subsidiary of Nestlé S.A, specialised in ophthalmic products, and Summit, a developer, manufacturer and marketer of ophthalmic laser systems designed to correct common vision disorders, today announced that they have entered into a definitive agreement under which Alcon will acquire Summit for USD 19 per share in cash, for an aggregate consideration of about USD 900 million.

Through this acquisition, Alcon will quickly and decisively enter the field of refractive surgery designed to correct common vision disorders such as nearsightedness, far-sightedness and astigmatism.

Following the agreement, Alcon will begin a tender offer for all outstanding shares of Summit for USD 19 per share. Alcon expects to commence the offer by June 5, 2000. Any shares not purchased in the offer will be acquired for the same price in cash in a second-step merger.

The merger agreement has been approved by the boards of directors of Nestlé and Summit. The offer and the merger are subject to regulatory approval. Alcon, a subsidiary of Nestlé S.A, researches, develops, manufactures and markets ophthalmic products, including surgical instruments and accessory products, intra-ocular lenses, prescription drugs and contact lens care solutions. Founded in Fort Worth, Texas in 1947, Alcon now employs more than 10,000 people around the world. Total sales for 1999 were USD 2.4 billion, representing around 5 per cent of Nestlé's consolidated sales, with activity in more than 170 countries.