Valeant Pharma acquires global eye company, Bausch+ Lomb, for $8.7 bn
Canada’s largest pharma company, Valeant Pharmaceuticals International has entered into a definitive agreement to acquire global eye health company, Bausch + Lomb, for US $8.7 billion in cash. The acquisition positions Valeant to capitalize on growing eye health trends, driven by an aging patient population, increased rate of diabetes and demand from emerging markets.
“We are excited to announce the acquisition of Bausch + Lomb, which will transform Valeant into a global leader in eye health by significantly strengthening our capabilities in ophthalmic pharmaceuticals, contact lenses and lens care products, and ophthalmic surgical devices and instruments. Bausch + Lomb’s world-renowned brand, comprehensive portfolio of leading eye care products, and promising late stage pipeline are an ideal strategic fit for our current ophthalmology business and we are strongly committed to continuing to build a sustainable eye health business. With this transaction, Valeant will be a worldwide leader in both dermatology and eye health.”
Valeant’s Chairman and Chief Executive Officer, J. Michael Pearson.
The New York-based Bausch + Lomb will retain its name and become a division of Valeant, whose existing ophthalmology businesses will also be integrated. The new global eye health platform will have estimated pro forma 2013 net revenue of over $3.5 billion. Bausch + Lomb’s current portfolio includes well-known prescription and OTC brands Besivance, Lotemax and PreserVision, to name a few.
Under terms of the agreement, the $8.7 billion acquisition fee will be split into two: $4.5 billion will go to an investor group led by Warburg Pincus and approximately $4.2 billion will be used to repay Bausch + Lomb’s outstanding debt. Valeant expects to achieve at least $800 million in annual cost savings by the end of 2014.
The transaction is expected to close in the third quarter, subject to customary closing conditions and regulatory approvals.
Valeant Pharmaceuticals eyes China with Bausch deal (The Globe and Mail)
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