The head office and logo of Valeant Pharmaceutical are pictured in Montreal .Ryan Remiorz/The Canadian Press
Valeant Pharmaceuticals International Inc. is continuing to build up its global presence in the skin-care sector with an all-cash $250-million (U.S.) acquisition of Solta Medical Inc.
Canada's largest publicly traded drug company said on Monday it has struck a deal to buy U.S.-based medical-device systems maker Solta for $2.92 per share, a 40 per cent premium to Solta's closing price on Dec. 13.
Solta's products include a system that uses radio-frequency energy for skin tightening and a treatment that destroys fat cells for waist-circumference reduction.
The company posted revenue of about $145-million last year.
"The acquisition of Solta will bring tremendous value to Valeant's current aesthetic portfolio and together with our previous acquisitions, will create the broadest aesthetic portfolio in the industry," said Valeant chairman and chief executive officer Michael Pearson.
"Solta's leading aesthetic devices are a natural fit with Valeant's facial injectables, professional skin care products and physician dispensed products and will establish Valeant in a strong leadership position as we continue to build our presence in the aesthetic market. Moreover, this transaction will further enhance our ability to offer dermatologists and plastic surgeons the most comprehensive aesthetic product offering."
Solta's board has unanimously approved the transaction, which is expected to close in the first quarter of 2014.
Valeant said the acquisition will be immediately accretive to its cash earnings per share.
The offer is conditional on the tender of a majority of Solta's shares as well as regulatory approval and other standard closing conditions.
For Valeant, the deal follows on other related acquisitions, such as the $344-million agreement to buy skin-care product maker Obagi Medical Products Inc. in March.
Last year, Valeant made more than a dozen acquisitions, including the $2.6-billion takeover of Medicis Pharmaceutical Corp. of Scottsdale, Ariz.
Bertrand Marotte