Valeant to acquire Obagi Medical for around $344 million
Canada-based Valeant Pharmaceuticals International (TSX: VRX) is on the acquisition trail again, announcing a definitive agreement to buy all the outstanding common stock of USA-based Obagi Medical Products (Nasdaq: OMPI), which develops, markets and sells proprietary skin care systems in the physician-dispensed skin care market, for $19.75 per share in cash, or around $344 million.
The offer represents a 28% premium to Obagi's closing share price on March 19, the last trading day prior to announcement. The transaction is expected to close in the first half of 2013 and Valeant expects the acquisition, once completed, to be immediately accretive to Valeant's cash earnings per share. The combination is expected to yield cost synergies at an annual run rate of at least $40 million within six months of closing.
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