Canada’s Valeant Pharmaceuticals and Bauch+Lomb have announced they have entered into a definitive agreement under which Valeant will acquire Bausch+Lomb for USD$8.7 billion in cash.
Under terms of the agreement, approximately USD$4.5 billion will go to Bausch+Lomb’s current owner, Warburg Pincus and approximately USD$4.2 billion will be used to repay Bausch+Lomb’s outstanding debt.
In a statement, Valeant’s CEO, Michael Pearson said the acquisition “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.”
Until the companies receive regulatory approval and consummate the transaction, there will be no immediate changes to day-to-day operations
“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,” he said.
Valeant expects to achieve at least USD$800 million in annual cost savings by end of 2014. Bausch+Lomb expects to have revenues of approximately USD$3.3 billion and adjusted EBITDA in 2013 of approximately USD$720 million.
In a statement, Bausch+Lomb’s Chief Executive Officer, Brent Saunders, said “Bausch+Lomb has undergone a profound transformation over the last few years. We introduced innovative new products for patients; built a robust pipeline; expanded into new markets; and strengthened our relationships with eye care professionals around the world. Valeant’s acquisition of our company is a testament to the tremendous value our talented employees have created over the past several years,” he said.
“Our companies have a shared commitment to providing innovative and high quality products and exceptional service to customers. I am confident that under their stewardship, the Bausch+Lomb brand will continue to stand for excellence and innovation in eye health.”
When asked whether the acquisition will have any immediate impact on Bausch+Lomb’s product range or its staffing arrangements in Australia, Mami Asahina, the company’s Corporate Communications Manager in Asia Pacific said, “the consummation of our agreement with Valeant is subject to regulatory approval and other customary closing conditions, and therefore we will continue to operate independently until those approvals are obtained”.
“Until the companies receive regulatory approval and consummate the transaction, there will be no immediate changes to day-to-day operations. We anticipate that the deal will close sometime during the third quarter of this year.”
