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Published On: Tue, May 28th, 2013

Canadian pharmaceutical giant, Valeant, acquires global eye health company, Bausch and Lomb for $8.7 billion

Valeant Pharmaceuticals International, Inc.  and Bausch + Lomb Holdings Incorporated, the global eye health company, today announced that they have entered into a definitive agreement under which Valeant will acquire Bausch + Lomb for $8.7 billion in cash, according to a Bausch and Lomb press release Monday.

Image/Video Screen Shot

Image/Video Screen Shot

Under terms of the agreement, which was unanimously approved by the Board of Directors of both companies, Valeant will pay aggregate consideration of $8.7 billion in cash, of which approximately $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 end of 2014. Bausch + Lomb’s expects to have revenues of approximately $3.3 billion and adjusted EBITDA in 2013 of approximately $720 million.  The transaction is expected to be immediately accretive to Valeant’s cash earnings per share.  Assuming the transaction occurred on January 1, 2013 and assuming the full realization of synergies, the acquisition would have been approximately 40% accretive to Valeant’s expected 2013 Cash EPS.

The transaction will be financed with debt and approximately $1.5 – $2.0 billion of new equity.  Valeant has secured fully committed debt financing for the transaction from Goldman Sachs Bank USA.  Taking into account the anticipated equity raise, Valeant’s debt to pro forma adjusted EBITDA ratio will be approximately 4.6 times.

Valeant’s Chairman and Chief Executive Officer, J. Michael Pearson, said, “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.”

Bausch + Lomb will retain its name and become a division of Valeant.  Valeant’s existing ophthalmology businesses will be integrated into the Bausch + Lomb division, creating a global eye health platform with estimated pro forma 2013 net revenue of more than $3.5 billion.  The acquisition positions Valeant to capitalize on growing eye health trends driven by an aging patient population, an increased rate of diabetes and demand from emerging markets. The combined business will also benefit from access to a strong product portfolio and a late stage pipeline of innovative, new products.

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.” Saunders continued, “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.”

Bausch + Lomb is a leading global eye health company that operates in three segments: Pharmaceutical (including prescription brands, generics and over-the-counter (OTC)), Vision Care (contact lenses and solutions), and Surgical (intraocular lenses and surgical equipment).  Bausch + Lomb has a broad portfolio of eye health products, including well-known prescription and OTC brands BesivanceLotemaxOcuvite and PreserVision; vision care brands Biotrue ONEday, PureVisionrenu and Boston; and surgical brands enVistaStorzStellaris and VICTUS.

Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, neurology and branded generics.

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About the Author

- Writer, Co-Founder and Executive Editor of The Global Dispatch. Robert has been covering news in the areas of health, world news and politics for a variety of online news sources. He is also the Editor-in-Chief of the website, Outbreak News Today and hosts the podcast, Outbreak News Interviews on iTunes, Stitcher and Spotify Robert is politically Independent and a born again Christian Follow @bactiman63

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  1. Canadian pharmaceutical giant, Valeant, acquires global eye health company … – The Global Dispatch says:

    […] Canadian pharmaceutical giant, Valeant, acquires global eye health company …The Global DispatchValeant Pharmaceuticals International, Inc. and Bausch + Lomb Holdings Incorporated, the global eye health company, today announced that they have entered into a definitive agreement under which Valeant will acquire Bausch + Lomb for $8.7 billion in …Valeant has eye on more acquisitions, possible 'merger of equals'Globe and MailValeant Pharma plans to purchase Bausch + Lomb for $8.7bnPharmaceutical Business ReviewValeant Pharmaceuticals to Buy Bausch & LombBenzingaFiercePharma -Insider Monkey (blog) -Canada NewsWire (press release)all 193 news articles » […]

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