May 13, 2016 / 1:35 PM / 4 years ago

Mylan to buy Renaissance's topical business for $950 million

(Reuters) - Mylan NV (MYL.O) said it would buy a part of the topicals-focused drug business of Renaissance Acquisition Holdings LLC for $950 million to expand its dermatological product portfolio.

The deal comes three months after Mylan said it would acquire Swedish drugmaker Meda, which also has a sizeable dermatology business.

Dermatology and topical drugs have long been an area of focus for Mylan, Chief Executive Heather Bresch said in a statement on Friday.

The Renaissance business is complementary to Meda’s, she said.

The deal will add about 25 branded and generic non-sterile topical products, the company said.

Renaissance, majority owned by private equity firm RoundTable Healthcare Partners, will retain its sterile-focused businesses and associated manufacturing facility.

The deal, which is expected to close by the end of the third quarter, includes additional contingent payment of up to $50 million.

The unit generated revenue of about $370 million in 2015 and employed about 1,200, Mylan said.

Topical drugs are usually applied directly to the skin and are prescribed for a wide range of dermatological conditions.

Mylan said it expects to finance the deal using a combination of cash on hand and borrowings under existing credit facilities.

Cravath, Swaine & Moore LLP served as legal adviser.

Mylan’s shares were down slightly at $38.58 in morning trade.

Reporting by Ankur Banerjee and Amrutha Penumudi in Bengaluru; Editing by Sriraj Kalluvila

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