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• Case | HBS Case Collection | April 2016 (Revised July 2019)

  "Doctor My Eyes"--The Acquisition of Bausch & Lomb by Warburg Pincus (A)

  Nori Gerardo Lietz

  In early 2010, senior partners at Warburg Pincus met to review a report on Bausch & Lomb Incorporated, the firm's largest investment at the time. Warburg Pincus had led a group of investors in acquiring Bauch & Lomb on October 26, 2007, taking the company private and becoming its largest and controlling shareholder. Since the acquisition, there had been significant progress at Bausch & Lomb through changes in senior leadership and in its business model. But, shortly after the second anniversary of the investment, the senior partners were beginning to question whether the depth and pace of change was enough. They had some tough decisions to make.

  Keywords: private equity; health care; Mergers ＆ Acquisitions; governance; buyout; Private Equity; Finance; Mergers and Acquisitions; Health Industry; Consumer Products Industry; Pharmaceutical Industry; United States;

  Citation:

  Lietz, Nori Gerardo. "Doctor My Eyes"--The Acquisition of Bausch & Lomb by Warburg Pincus (A). Harvard Business School Case 216-021, April 2016. (Revised July 2019.)  View Details

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• Supplement | HBS Case Collection | July 2017 (Revised July 2019)

  "Doctor My Eyes"--The Acquisition of Bausch & Lomb by Warburg Pincus (B)

  Nori Gerardo Lietz and Ricardo Andrade

  The B Case of "Dr. My Eyes" provides the answer as to what happened after the ending fact pattern in Case A and the imminent choices faced by the protagonist in the primary case. At the end of the Case A, Bess Weatherman of Warburg Pincus, must chose one option of two very different alternatives as to which direction to take Bausch & Lomb. Essentially, she can either stay the course or terminate the management team she originally selected to run Bausch & Lomb only two years beforehand. At the end of Case A, students are asked to vote as to which alternative she should select. They are asked when is “good, good enough?” They invariably vote to stay the course. She did not. She chose to bring in new management headed by Brent Saunders. The remainder of the B Case illustrates the results he generated. Ultimately Bausch & Lomb was sold to Valeant for an IRR of 17.6% for a MOIC of 1.6x. The B case answers the question whether “good is good enough”.

  Keywords: Private Equity; Health Care and Treatment; Mergers and Acquisitions; Corporate Governance; Decision Choices and Conditions; Outcome or Result; Health Industry; Consumer Products Industry; Pharmaceutical Industry;

  Citation:

  Lietz, Nori Gerardo, and Ricardo Andrade. "Doctor My Eyes"--The Acquisition of Bausch & Lomb by Warburg Pincus (B). Harvard Business School Supplement 218-029, July 2017. (Revised July 2019.)  View Details

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• Case | HBS Case Collection | March 2017 (Revised July 2019)

  Interline Brands: Don't Stop Believing

  Nori Gerardo Lietz and Ricardo Andrade

  Interline Brands, a leading distributor of residential housing maintenance and repair parts and equipment in the U.S., had just held its November 2014 board meeting. The meeting had been productive but not without some soul searching for both the company’s management team and financial sponsors. Was now the right time to start a sale process? In particular, the team wondered whether the capital markets would cooperate and how effectively the management and sponsor teams would execute. Moreover, the company had only been private for two years, and the value creation plan was only halfway through completion. While there was much to be done at Interline, the company had performed well and was gaining momentum. Interline was a rare asset in terms of the scale it had reached. However, there were still unknowns. Would buyers reward Interline with a high valuation multiple that reflected its acceleration in organic growth? Would financing markets remain healthy? Would such a process disrupt Interline’s customers and employees?

  Keywords: private equity; Private Equity Exit; consumer goods; IPO; Private Equity; Initial Public Offering; Decision Choices and Conditions;

  Citation:

  Lietz, Nori Gerardo, and Ricardo Andrade. "Interline Brands: Don't Stop Believing." Harvard Business School Case 217-061, March 2017. (Revised July 2019.)  View Details

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