Valeant to acquire Obagi for $344M

Valeant Pharmaceuticals is acquiring Obagi Medical Products for nearly $344 million, just months after acquiring Medicis Pharmaceutical for $2.6 billion.

The definitive agreement would allow Valeant to acquire all outstanding common stock of Obagi for $19.75 per share in cash. The deal is expected to close in the first half of 2013, according to a news release.

Obagi’s skincare line includes the brands Nu-Derm, ELASTIDerm and CLENZIDerm. It posted revenue of $120 million in 2012. Obagi’s board of directors has unanimously approved the transaction.

In fall 2012, Valeant acquired Medicis for $44 per share in cash. Valeant projected the net revenue for combining dermatology and aesthetic businesses with Medicis would be about $1.7 billion. Medicis produces hyaluronic acid fillers Restylane and Perlane, Dysport (abobotulinumtoxinA) and Zyclara (imiquimod cream 3.75 percent).

Valeant’s deal with Obagi is expected to yield cost synergies of about $40 million within the first six months of closing, the company stated.

“The acquisition of Obagi will be a valuable supplement to Valeant’s current dermatology portfolio and will further build upon our growing aesthetics franchise,” J. Michael Pearson, Valeant CEO and chairman, said in a news release. “The addition of (Obagi) products will not only strengthen and diversify our dispensed portfolio, but also expand our market presence with dermatologists and plastic surgeons.”