LAVAL, Que. _ Valeant Pharmaceuticals International, Inc.
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) has a friendly deal to acquire Solta Medical, Inc.
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) a California-based company that makes medical devices used in cosmetic surgery procedures.
The Montreal-area company's offer of US$2.92 per share for all of Solta's stock is valued at US$250 million, a 40 per cent premium to Friday's closing price on Nasdaq.
On Monday, Solta shares jumped 39.2% to $2.91, while Valeant was up 1.8% to $115.03.
The transaction is expected to close in the first quarter of 2014, Valeant said in a press release.
Solta's board of directors supports the offer, which requires that Valeant gets at least a majority of Solta's shares.
``The acquisition of Solta will bring tremendous value to Valeant's current aesthetic portfolio and together with our previous acquisitions, will create the broadest aesthetic portfolio in the industry,'' said Michael Pearson, Valeant's chairman and chief executive officer.
``Solta's leading aesthetic devices are a natural fit with Valeant's facial injectables, professional skin care products and physician dispensed products and will establish Valeant in a strong leadership position as we continue to build our presence in the aesthetic market.''
Valeant has been active in M&A in recent years, including a merger with Biovail Corp. _ one of Canada's largest pharmaceutical companies, with dermatolgical creams amongst its products.
Since combining with Biovail, Valeant has moved into new market areas.
Amongst its biggest deals was the purchase of Bausch + Lomb for US$8.7-billion, which closed earlier this year.
In October, Valeant announced a US$973 million net loss for the third quarter, due to one-time impairment and restructuring charges and the settlement of a dispute with California-based Anacor Pharmaceuticals.