1-800-CONTACTS to Buy Portions of 2 Cos. 

1-800-CONTACTS Inc. has agreed to buy portions of mail-order contact lens retailers Lens Express and Lens 1st, the company announced Monday. 

The purchase price includes 900,000 restricted shares of common stock, $6.5 million in cash and the assumption of about $4.8 million in current liabilities. 

In a press release, the 1-800-CONTACTS said it expects the acquisitions to contribute $30 million to $35 million to its combined revenue and $6 million to $7 million in operating income in the 12 months following closing. 

1-800-CONTACTS said it will buy the businesses from Southfield, Mich.-based Camelot Ventures, and it expects the deal to close by Jan. 31. 

The company will finance the cash portion of the purchase.  Currently, the company is carrying about $5 million in debt, down from $19.1 at the end of its second quarter and $9.9 million at the end of its third quarter. 

1-800-CONTACTS said a recent move to purchase lens directly from Johnson & Johnson will allow it to reduce inventory and free up some of the capital needed to complete the purchase. 

As part of the deal, Camelot Ventures Managing Partner and Lens 1st founder David B. Katzman was expected to join 1-800 CONTACTS' board of directors. 

Upon closing, Camelot Ventures will own about 1.46 million shares, or 11 percent, of outstanding 1-800-CONTACTS stock. 

1-800-CONTACTS posted net income of $2.15 million, or 18 cents per share, on revenue of $37.65 million in 2001. 

Shares of 1-800-CONTACTS closed at $26.44 Monday, up $2.07, or 8.5 percent, on the Nasdaq Stock Market.