American pharmaceutical company Valeant Pharmaceuticals International on Monday said it would acquire Solta Medical Inc. for about $236 million in cash. The deal will give Valeant access to products used in procedures such as skin rejuvenation, skin tightening and body contouring.
According to a report by Reuters, Solta last month said it had retained investment bank Piper Jaffray as its adviser to explore a possible sale. Solta is selling itself in the light of falling profits from its medical equipment business and pressure from activist investor Voce Capital Management LLC.
The report said Valeant would acquire all of the outstanding common stock of Solta for $2.92 per share in cash. This represents a 40% premium to Solta's closing share price on December 13. The deal is expected to close in the first quarter of 2014, the report said.
Valeant chief executive Michael Pearson said in a statement that the acquisition of Solta will bring tremendous value to his company's aesthetic portfolio. Pearson added that together with Valeant's previous acquisitions, the American pharmaceutical firm will create the broadest aesthetic portfolio in the industry.
Valeant generated a revenue of $3.5 billion last year, said Bloomberg in a separate report. Based on a profle by CrunchBase, it has made a total of five acquisitions totaling $9.37 billion to date.
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