Canada's Valeant Pharma to acquire US-based Solta Medical for $250 mn
17 December 2013
Canada's biggest drug maker and one of the most aggressive acquirers, Valeant Pharmaceuticals International Inc has agreed to acquire US medical device systems maker Solta Medical Inc, for approximately $250 million in an all-cash deal, to create a global leader in skin-care sector.
Under the terms of the deal, Valeant will acquire all of the outstanding shares of Solta for $2.92 per share. The offer price, which represents a 40-per cent premium to share's closing price on 13 December 2013, the last trading prior to announcement, values the company at approximately $250 million.
Montreal-based Valeant is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products, primarily in the areas of dermatology, eye health, neurology, and branded generics.
Hayward, California-based Solta Medical is a world leader in medical aesthetics market providing six aesthetic energy devices to address a range of issues, including skin resurfacing and rejuvenation, body contouring and skin tightening and acne reduction.
Solta's products include the Thermage CPT system that provides non-invasive treatment options using radiofrequency energy for skin tightening, the Fraxel repair system for use in dermatological procedures requiring ablation, coagulation, and resurfacing of soft tissue, the Clear + Brilliant system to improve skin texture and help prevent the signs of aging skin, and the Liposonix system that destroys unwanted fat cells resulting in waist circumference reduction.
Using the company's products, more than two million procedures have been performed around the world. Solta made total revenue of approximately $145 million in 2012.
The transaction, which has been unanimously approved by Solta's board, is expected to close in the first quarter of 2014.
Valeant's chief executive officer Michael Pearson said: "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.''
He said Solta's devices are a natural fit with Valeant's products and will establish Valeant in a strong leadership position and will further enhance its ability to offer dermatologists and plastic surgeons the most comprehensive aesthetic product offering.
The acquisition by Valeant provides the best opportunity for Solta and its employees to achieve their potential while generating a significant, near term return for our stockholders, Solta's chairman and interim CEO Mark Sieczkarek said.
"The addition of Solta's industry leading brands and global sales organisation creates a very compelling platform for future growth in the medical aesthetic segment,'' he further stated.
The offer is conditional on the tender of majority of Solta's shares as well as required regulatory approvals and customary closing conditions. Following the completion of the tender offer, a wholly owned subsidiary of Valeant will be merged with Solta, according to the company.
Valeant said the acquisition, once completed, will be immediately accretive to the company's earnings.
Valeant has been in an acquisition spree in recent years. In June, it acquired leading global eye health company Bausch + Lomb for $8.7 billion. Other acquisitions this year include the $344-million buy of California-based skin-care product maker Obagi Medical Products and the purchase of Natur Produkt International, a Russian specialty pharma company for approximately $163 million.
Last year's acquisitions include Arizona-based medical cosmetics company Medicis Pharmaceutical Corp for about $2.6-billion.
Earlier this year, Valeant has backed out from bidding for Serbia's Galenika Pharmaceuticals and also gave up plans for acquiring US generic drug giant Actavis for $13 billion. (See: Canada's Valeant backs out from buying Serbia's Galenika Pharmaceuticals)