Activist Investor Turns Up Heat On Cooper, Urges Bausch + Lomb Merger To Boost Returns: Report

Activist investor Jana Partners has quietly built a stake in Cooper Cos. and reportedly plans to push the California-based medical device maker to explore strategic alternatives, including a potential merger between its contact-lens business and rival Bausch + Lomb.

The size of Jana’s stake has not been disclosed, but the investor is apparently preparing to engage with Cooper’s management to influence direction, The Wall Street Journal reported, citing people familiar with the matter.

Bausch + Lomb CEO Brent Saunders, known for his aggressive dealmaking, said he would be open to such a combination, and that it could “strengthen competition and create a more scaled company in the contact-lens segment.”

Pressure To Improve Returns 

Beyond pushing for a merger, Jana Partners also reportedly wants Cooper to take a hard look at how it’s running the business. The activist investor plans to press the company to use its capital more efficiently and deliver stronger returns for shareholders, according to people familiar with the matter.

Jana believes Cooper’s two main units, including CooperVision, which makes contact lenses, and CooperSurgical, focused on women’s health and fertility, don’t really fit together and have little overlap and simplifying the structure could improve the company’s performance.

Cooper’s Decline

Cooper, valued at about $14 billion, reported $3.9 billion in revenue for 2024, with the CooperVision segment contributing over two-thirds of total sales.

The firm reportedly maintains that it remains confident in its dual-market strategy, arguing that both segments operate in growing global markets and complement each other strategically.

However, Cooper’s contact-lens business has lagged rivals, according to the report, while its women’s health segment has faced margin pressure after a series of acquisitions that have yet to deliver returns.

Why Bausch + Lomb Fits Into the Picture

Jana believes there are potential buyers for both Cooper divisions, but sees a tie-up between CooperVision and Bausch + Lomb as particularly appealing to investors.

Bausch + Lomb, with a market capitalization of about $5.3 billion, was itself spun out from a larger healthcare company under Saunders’s leadership. Both firms compete with Johnson & Johnson and Alcon in the global contact-lens market, and a merger could create a stronger challenger in the space.

Jana’s Track Record in Activism

Jana has a history of driving corporate shake-ups. It previously pushed for strategic reviews at Frontier Communications, which was later acquired by Verizon, and Markel, which is still under review.

Earlier this year, Jana struck an agreement with Lamb Weston, the frozen potato giant, leading to the addition of six new board members after the activist pressed for changes.

How Is Stocktwits Reading The Mood?

On Stocktwits, retail sentiment was ‘bullish’ for Cooper and ‘bearish’ for Bausch + Lomb, with overall message volume remaining ‘low’ for both.

While Cooper Cos.’ stock has declined 22% so far this year, Bausch + Lomb’s stock has fallen 17% over the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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