By Dow Jones Business News,
December 16, 2013, 08:45:00 AM EDT
By Everdeen Mason
Valeant Pharmaceuticals International Inc. ( VRX ) agreed to acquire medical device company Solta Medical Inc. ( SLTM )
for $250 million to increase its offerings in the growing aesthetic medicine market.
Valeant will offer Solta shareholders $2.92 a share, a 40% premium to its Friday close of $2.09.
Solta shares jumped 21% in premarket trading to $2.52 a share. The stock hasn't traded above the offer price since
October 2012. Through Friday's close, Solta's stock is down 23% in the past 12 months.
Solta is known for developing medical devices for aesthetics, including skin tightening treatment Fraxel,
dermatological product Clear + Brilliant and fat loss system Liposonix. While the market for dermatological treatments
has grown, the company has posted revenue below analyst expectations in recent periods. Solta recently unveiled
restructuring plans in November that includes a reduction in work force.
Meanwhile, Valeant seeks to add Solta's products to its existing portfolio of skin-care treatments.
"Solta's leading aesthetic devices are a natural fit with Valeant's facial injectables, professional skin care
products and physician dispensed products, and will establish Valeant in a strong leadership position as we continue to
build our presence in the aesthetic market," said Valeant Chief Executive J. Michael Pearson.
The deal is expected to close in the fiscal first quarter and will be immediately accretive to Valeant's earnings per
share, the company added.
Valeant has been making acquisitions to boost its profile in the eye-care and medical device industries. Most
recently, the company acquired Montreal-based Bausch & Lomb Holdings Inc. for $8.7 billion.
Valeant's shares closed Friday at $106.83. The stock is up 81% in the past 12 months.
Write to Everdeen Mason at email@example.com
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