Allergan to acquire KYTHERA in $2.1 billion deal

Botox maker Allergan (NYSE: AGN) has reached a definitive agreement to acquire KYTHERA Biopharmaceuticals (Nasdaq: KYTH), a biopharmaceutical company focused on the discovery, development and commercialization of novel prescription products for the aesthetic medicine market.

Allergan has agreed to acquire KYTHERA in a cash and equity transaction valued at $75 per KYTHERA share, or around $2.1 billion, subject to the fulfillment of certain customary conditions. Allergan is the new name for Ireland-incorporated Actavis, which bought Allergan for about $70.5 billion earlier this year. KYTHERA's shares leapt 22.2% to $74.18 by late morning trading

The fixed-value transaction consideration will be payable 80% in cash and 20% in new AGN shares issued to KYTHERA shareholders. Allergan's 2015 earnings-per-share forecast provided on May 11, 2015 is unchanged as a result of the acquisition. The acquisition is expected to be breakeven in 2016 and accretive thereafter. The company remains committed to de-levering to below 3.5x debt to Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) by the end of the first quarter of 2016.