Carl Zeiss: DORC to Be Acquired and We Expect Long-Term Margin Benefits

Narrow-moat Carl Zeiss announced today that it has agreed to acquire Dutch Ophthalmic Research Center, or DORC, for roughly EUR 985 million. DORC is a supplier of ophthalmic instruments and equipment and specializes in vitreo-retinal surgery. The deal is expected to close in the first half of 2024 and given that the surgical ophthalmology market is a fragmented space with Zeiss shares lagging larger players like Alcon and Bausch + Lomb, we don’t think the firm will face serious regulatory or antitrust issues. We maintain our fair value estimate of EUR 84 per share.