Valeant Pharma to unload Obagi Medical for $190-million
Valeant Pharmaceuticals International Inc. will unload its Obagi Medical Products unit for $190-million. The company will use the proceeds to pay down its debt.
CERTAIN AFFILIATES of Valeant Pharmaceut icals International Inc. have entered into an agreement to sell its Obagi Medical Products business for $190-million in cash to Haitong
International Zhonghua Finance Acquisition Fund I LP. Limited partners of the fund include industry veterans in other geographic markets, such as China Regenerative Medicine International Ltd.
“The sale of Obagi marks additional progress in our efforts to streamline our operations and reduce debt,” said Joseph C. Papa, chairman and chief executive officer, Valeant. “As we continue to transform Valeant, we will remain focused on the core businesses that will drive high value for our shareholders.”
Obagi Medical Products is a global specialty pharmaceutical company founded by leading skin care experts in 1988. Obagi products are designed to help minimize the appearance of premature skin aging, skin damage, hyperpigmentation, acne and sun damage, and are primarily available through dermatologists, plastic surgeons, medical spas and other skin care professionals. More information can be found at the Obagi website.
Valeant will use proceeds from the sale to permanently repay term loan debt under its senior secured credit facility. The transaction is expected to close in the second half of 2017, subject to customary closing conditions, including receipt of applicable regulatory approvals.
The company currently estimates that the full-year 2017 revenue and adjusted earnings before interest, taxes, depreciation and amortization for the Obagi business would have been approximately $85-million and $30-million, respectively.
In this transaction, Morgan Stanley & Co. LLC served as financial adviser to Valeant, and Norton Rose Fulbright acted as legal adviser to Valeant.
About Valeant Pharmaceuticals International Inc.
Valeant Pharmaceuticals International is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics.
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