WellPoint to Purchase 1-800 Contacts Eyewear and Contact Lens Retailer For Around $900 Million–Subsidiary Watch
Posted Jun 04 2012 3:05am
This probably comes as no surprise as we already have United Healthcare in the “cheap” hearing aid business and many seniors get a “free” one when enrolling in Medicare Part D contracts, so will WellPoint use the eye glasses and contact lens as a draw for more clients? Time will tell.
I would assume as time moves forward with the purchase the marketing will kick in here and it is the largest retailer in the contact lens market. If you read here often enough then you can search for the words “subsidiary watch” and find many articles on the companies insurance companies have either recently bought or have owned for a number of years, it’s a changed world out there. BD
The two companies didn't disclose the purchase price, but a person familiar with the matter said it is close to $900 million. WellPoint said the transaction will close in the third quarter and start adding to the company's per-share earnings in 2014.
The deal will be financed with cash on hand, the Indianapolis, Ind.-based insurer added.
WellPoint officials said they believe the acquisition will capitalize on a shift toward people selecting their own health-care products and health coverage. The company could develop health plans and vision coverage that offer special discounted access to contacts and eyewear, they said, and it could cross-promote between its customers and the retailer's. The tie-ins could potentially expand to include Blue Cross and Blue Shield plans that aren't part of WellPoint, they added.