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Valeant Pharmaceuticals and Bausch + Lomb have entered into a definitive agreement under which Valeant will acquire Bausch + Lomb for $8.7 billion in cash.
Valeant Pharmaceuticals International, Inc. and Bausch + Lomb Holdings Incorporated announced that they have entered into a definitive agreement under which Valeant will acquire Bausch + Lomb for $8.7 billion in cash. The announcement was detailed in a press statement on May 27.
Under terms of the agreement, which was unanimously approved by the Board of Directors of both companies, Valeant will pay aggregate consideration of $8.7 billion in cash, of which approximately $4.5 billion will go to an investor group led by Warburg Pincus and approximately $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 end of 2014. Bausch + Lomb expects to have revenues of approximately $3.3 billion and adjusted EBITDA in 2013 of approximately $720 million. The transaction will be financed with debt and approximately $1.5 - $2.0 billion of new equity.
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.
The transaction, which is expected to close in the third quarter, is subject to customary closing conditions and regulatory approvals.