Obagi Medical Products, the cosmetics products manufacturer has entered into an agreement for a US$24 per share buyout with Valeant Pharmaceuticals International. The offer was a revised bid made in order to top the tabled offer made by Merz Pharma Group, the German drugmaker.
Share values of Obagi rose by 9% to US$25.03 in trading after investors expected a takeover fight for a manufacturer of specialized skin care products that fight aging, sun damage and acne. Obagi's products are sold only with a prescription due to its above average potency compared to other cosmetics, thus allowing the manufacturer to maintain above norm prices.
The recession has decimated the aesthetics market, but with th economy recovering, more and more medical professionals have begun to offer the services again to their clientele.
Previously, Obagi and Valeant had agreed to place the share values at US$19.75 per share but Merz offered at US$22 per share. With the new offer by Valeant, Obagi's enterprise value rose to US$418 million.
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