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Valeant announced that it acquired Salix Pharmaceuticals for approximately $14.5 billion, which could result in annual cost savings of $500 million.
Valeant Pharmaceuticals announced on Feb. 23, 2015 that it acquired Salix Pharmaceuticals for $158 per share in cash, totaling approximately $14.5 billion including company debt. The acquisition, which is expected to close in the second quarter of 2015, gives Valeant access to Salix’s gastrointestinal portfolio of 22 products. The companies have not determined how the companies will be integrated, but expect the annual cost savings to be approximately $500 million from the cost base of the combined company. The savings will come from reduction in overhead and research and design rationalization.
"Salix's market-leading gastrointestinal franchise is an ideal strategic fit for Valeant's diversified portfolio of specialty products. The growing GI market has attractive fundamentals, and Salix has a portfolio of terrific products that are outpacing the market in terms of volume growth and a promising near-term pipeline of innovative products,” said J. Michael Pearson, Valeant's chairman and chief executive officer, in a press release.