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Valeant to buy Bausch + Lomb for $8.7 billion


Valeant Pharmaceuticals International Inc. and Bausch + Lomb Holdings Inc. have entered into a definitive agreement, under which Valeant will acquire Bausch + Lomb.

Laval, Quebec and Rochester, NY-Valeant Pharmaceuticals International Inc. and Bausch + Lomb Holdings Inc. have entered into a definitive agreement, under which Valeant will acquire Bausch + Lomb.

Under terms of the agreement, Valeant will pay aggregate consideration of $8.7 billion in cash-of which about $4.5 billion will go to an investor group led by Warburg Pincus and about $4.2 billion will be used to repay Bausch + Lomb’s outstanding debt. Valeant expects to achieve at least $800 million in annual cost savings by the end of 2014. Bausch + Lomb expects to have revenues of about $3.3 billion and adjusted EBITDA in 2013 of about $720 million.

Bausch + Lomb will retain its name and become a division of Valeant. Valeant’s existing ophthalmology businesses will be integrated into the Bausch + Lomb division, creating a global eye health platform with estimated pro forma 2013 net revenue of more than $3.5 billion.

“We are excited to announce the acquisition of Bausch + Lomb, which will transform Valeant into a global leader in eye health by significantly strengthening our capabilities in ophthalmic pharmaceuticals, contact lenses and lens-care products, and ophthalmic surgical devices and instruments,” said J. Michael Pearson, Valeant’s chairman and chief executive officer (CEO), in a prepared statement. “With this transaction, Valeant will be a worldwide leader in both dermatology and eye health.”

“We introduced innovative new products for patients; built a robust pipeline; expanded into new markets; and strengthened our relationships with eye-care professionals around the world,” said Brent Saunders, Bausch + Lomb’s CEO, in the statement. “Valeant’s acquisition of our company is a testament to the tremendous value our talented employees have created over the past several years.”

Following the closing, Saunders will join Valeant in an advisory role to help ensure a seamless transition and integration. Fred Hassan, chairman of Bausch + Lomb’s Board of Directors, will join Valeant’s Board of Directors.

In addition, Dan Wechsler, executive vice president and president of Bausch + Lomb’s global pharmaceuticals, will join Valeant as executive vice president and company group chairman, ophthalmology and eye health. Calvin W. Roberts, MD, Bausch + Lomb’s chief medical officer, will also join Valeant as its chief medical officer, ophthalmology and eye health.

The transaction is expected to close in the third quarter, according to the statement.

For more articles in this issue of Ophthalmology Times eReport, click here.

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