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Valeant to acquire Bausch + Lomb for $8.7 billion
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Valeant Pharmaceuticals has agreed to purchase Bausch + Lomb for $8.7 billion in cash, according to a joint news release from the companies.
Under the agreement, Bausch + Lomb will keep its name and function as a division of Valeant, and Valeant’s ophthalmology holdings will be folded into the Bausch + Lomb division, the release said.
The result will be a global ophthalmology business with 2013 net revenue estimated to be $3.5 billion, according to the release. By the end of 2014, Valeant predicts annual cost savings of $800 million due to the transaction.
The deal calls for Brent Saunders, Bausch + Lomb’s CEO, to work with Valeant to allow for a smooth transition, while Fred Hassan, chairman of Bausch + Lomb’s board of directors, will join Valeant’s board of directors.
Dan Wechsler, executive vice president and president of Bausch + Lomb’s Global Pharmaceuticals, will join Valeant as executive vice president and company group chairman of ophthalmology and eye health. Calvin W. Roberts, MD, Bausch + Lomb’s chief medical officer, will become Valeant’s chief medical officer of ophthalmology and eye health.
The deal is expected to be completed in the third quarter after standard regulatory approvals. Valeant will pay $4.5 billion to an investor group led by Warburg Pincus and another $4.2 billion to pay off Bausch + Lomb’s outstanding debt, the release said.