Valeant Pharmaceuticals International, Inc. said it agreed to buy Medicis Pharmaceutical Corp. in a transaction valued at about $2.6 billion.
Valeant, in what it described as a “definitive agreement,” said it would acquire all Medicis shares outstanding for $44 each in cash. The purchase price represents an approximate 39 percent premium to Medicis’ closing price of $31.56 on Aug. 31 in New York composite trading.
The agreement was unanimously approved by the boards of directors of both companies, the companies said in a joint statement. The transaction is expected to close sometime during the first two quarters of next year.
The acquisition is a move by Valeant “to become a leader in dermatology” by expanding the company’s “presence in acne, actinic keratosis, aesthetic injectables and anti-virals, among others,” said Chairman and Chief Executive Officer J. Michael Pearson in a statement.
The transaction is subject to several conditions, including approval by Medicis stockholders and expiration of any applicable regulatory waiting period. Valeant expects the transaction, once completed, to be immediately accretive to Valeant’s cash earnings per share.