Dec 16 Valeant Pharmaceuticals International
said on Monday that it would buy Solta Medical
Inc for about $236 million in cash to add products for
procedures such as skin rejuvenation, skin tightening and body
Last month, Solta said it had retained Piper Jaffray as its
adviser to explore a possible sale in light of falling profits
from its medical equipment business and pressure from activist
investor Voce Capital Management LLC.
Valeant's latest deal is consistent with comments by senior
executives in October that the drugmaker was seeking small,
cash-based acquisitions in the near term, while still interested
in a "merger of equals" involving a stock swap.
Shares of the company have nearly doubled in Toronto this
year, with much of investors' enthusiasm stoked by its pursuit
of profitable acquisitions.
Solta, which Valeant said would immediately add to earnings,
looked like a nice addition, RBC analyst Douglas Miehm said in a
But Solta may have other suitors, he said, noting "obvious
candidates" such as Germany's Merz Pharma Group, Galderma
Laboratories and Allergan Inc.
An Allergan spokeswoman declined to comment. Officials at
Solta and the other companies could not be immediately reached
Valeant would acquire all of the outstanding common stock of
Solta for $2.92 per share in cash, a 40 percent premium to
Friday's closing price. Parties expect the deal to close in the
first quarter of 2014.
With the acquisition, Valeant would have "the broadest
aesthetic portfolio in the industry," Chief Executive Officer
Michael Pearson said in a statement.
Solta shares jumped more than 39 percent to $2.91, just shy
of Valeant's offered price, in midday trading.
Valeant stock climbed 2.9 percent to $109.97 in New York and
C$116.32 in Toronto.