Valeant Pharmaceuticals International Inc., Canadas largest drug-maker decided to buy Bausch & Lomb Holdings Inc., the eye-care company owned by Warburg Pincus LLC for about $4.5 billion.
Valeant would most definately have to spend $4.2 billion covering Bausch & Lombs debt bringing the value to total of $8.7 billion said the company today.
Recently, Valeant has been looking to acquire companies with a solid cash flows in high growth areas such as eye-care. The purchase is the largest of 15 acquisitions for Montreal-based Valeant since company creation in 2010s merger with Biovail Corp.
The acquisition added immediately around 13% to the share price of Valeant reaching total of $84.47 per share. Even before the merger of 2010 the company has been using a strategy of acquiring a mix of small and larger companies diversifying its work in dermatology and ophthalmology.
Bausch & Lomb is making products such as contact lenses, eye care solutions and prescription medicines.
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