1-800 CONTACTS closes transactions to sell ClearLab

DRAPER — Replacement contact lens company 1-800 CONTACTS Inc. said Thursday it has closed the transactions for the sale of its ClearLab business.

The company sold its flat pack technology and certain other intellectual property to Menicon Co. Ltd., a Japanese contact lens manufacturer, in June and sold ClearLab's manufacturing, distribution and customer support operations to Mi Gwang Contact Lens Co. Ltd., a Korean-based contact lens manufacturer last week.

Jonathan Coon, chief executive officer, said 1-800 CONTACTS received the expected $32 million in cash and $6.5 million in Mi Gwang's stock upon closing the transactions. The moves allow 1-800 CONTACTS to pay off all of its outstanding debt and capital lease obligations, Coon said.

The company also expects to receive from Menicon deferred cash payments of up to $5 million upon Menicon reaching certain milestones, as well as possible earn-out payments over a minimum 15-year term.