Activist Jana Takes Substantial Stake in Cooper, Eyes Strategic Shake-up

Activist investor Jana Partners has reportedly acquired a significant stake in The Cooper Companies The Cooper Companies, a diversified medical device manufacturer, signaling a potential push for strategic changes. The news has already begun to stir speculation, particularly around the future of Cooper's highly regarded contact-lens unit, CooperVision. Indeed, the chief executive of Bausch + Lomb Bausch + Lomb, a major player in the eye health sector, has openly expressed interest in acquiring the unit.
Jana Partners, known for its aggressive campaigns targeting everything from Whole Foods to Macy's, typically advocates for operational improvements, asset sales, or even full company spin-offs to unlock shareholder value. Cooper, which boasts a market capitalization north of $16 billion
, operates through two distinct segments: CooperVision https://coopervision.com/, a global leader in contact lenses, and CooperSurgical https://coopersurgical.com/, which focuses on women's health and fertility solutions. The activist's entry suggests they see a disconnect between the sum of these parts and the company's current valuation.
The prospect of CooperVision becoming an independent entity, or being sold off, immediately caught the attention of rivals. Bausch + Lomb's chief executive recently told analysts and media that the company "would certainly be interested" in exploring an acquisition of Cooper's contact lens business. For Bausch + Lomb, which recently separated from Bausch Health Companies https://www.bauschhealth.com/, such a move would be transformative, significantly bolstering its own contact lens portfolio and creating substantial synergies in manufacturing, distribution, and research and development.
This development unfolds against a backdrop of robust M&A activity in the medical device sector, driven by companies seeking to gain market share, expand product offerings, and achieve economies of scale. Jana's involvement puts immediate pressure on Cooper's management team and board to evaluate strategic alternatives for its divisions. While CooperVision is a powerhouse, contributing a significant chunk of Cooper's revenue, the argument for splitting the company often revolves around allowing each segment to pursue its specific growth strategies without the constraints or distractions of the other.
Investors will now keenly watch for Cooper's response to Jana's stake and any formal communication from the activist fund regarding its specific demands. The coming months are likely to see intense discussions behind closed doors, potentially leading to a significant reshaping of The Cooper Companies and a major shake-up in the competitive contact lens market.