Bausch and Lomb had originally plotted an IPO and has changed directions with this acquisition. Interesting that half the purchase price here is to get rid of the company debt. Valeant used to be known as ICN, a US corporation years ago and with a merge of another company back in 2010, they moved to Canada for better tax breaks so perhaps with this acquisition those will get bigger? BD
Valeant Pharmaceuticals and Biovail Merge – Moves to Canada from Orange County For Better Tax Breaks
10:01 a.m. | Updated Bausch & Lomb, the eye care company, agreed on Monday to sell itself to Valeant Pharmaceuticals International of Canada for about $8.7 billion, sidestepping the lengthier process of an initial public offering.
Under the terms of the deal, Valeant will pay $4.5 billion to the investor group that owns Bausch & Lomb, led by the private equity firm Warburg Pincus. It will also spend about $4.2 billion to repay Bausch & Lomb’s debt.
Valeant, which is based in Laval, Quebec, has made acquisitions a core part of its growth strategy. The Bausch & Lomb deal is the company’s biggest yet, over three times larger than the $2.6 billion purchase of the skin care company Medicis Pharmaceutical last year.