Shares of Lake Forest-based Cooper Cos. fell 10.7% Monday on news that it bought two surgical device companies that will be a drag on earnings for the next couple of years.
Cooper makes contact lenses and women’s surgical products.
Cooper said it bought NeoSurg Technologies Inc., a Houston-based company that makes devices that help maintain an opening when laparoscopes are used during minimally invasive surgeries. Laparoscopes are small, thin tubes with a scope on the tip that can be used to see inside bodies.
It also acquired Eden Prairie, Minn.-based Inlet Medical Inc., a maker of pelvic floor reconstruction kits and trocar closure systems. Trocars are devices that maintain openings in which the laparoscopic tubes are inserted.
Financial terms of the deals weren’t disclosed.
Cooper said it expected the acquisitions would lower earnings by about $8.8 million for the 12 months through October 2006 and $6.6 million the following year. The companies are set to add about $900,000 to earnings in 2008.
Wall Street had expected Cooper to earn $178 million for the year ending October 2006 and $212.1 million during the 12 months ending October 2007.
On the revenue side, Cooper expects the acquired businesses to add $10 million in sales for the 12 months ending October 2006 year and about $50 million a year by 2010.
