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Valeant to buy Salix Pharmaceuticals for $14.5bn

Canada-based Valeant Pharmaceuticals International has signed an agreement to acquire all of the outstanding common stock of Salix Pharmaceuticals for approximately $14.5bn.

Agreement,

Financed through a combination of bank debt and bonds, the acquisition amounts to about $158 for each of Salix’s outstanding shares, and will be followed by a merger in which each remaining untendered share of Salix common stock would be converted into the right to receive the same $158.00 cash per share consideration as in the tender offer.

Headquartered in North Carolina, US, Salix is a widely gastrointestinal market leader with a portfolio of 22 total products, including renowned prescription brands Xifaxan, Uceris, Relistor, and Apriso, among other drugs.

Valeant chairman and chief executive officer Michael Pearson said: "The growing GI market has attractive fundamentals, and Salix has a portfolio of terrific products that are outpacing the market in terms of volume growth and a promising near-term pipeline of innovative products.

"With strong brand recognition among specialist GI prescribers, a highly rated specialty sales force, and a significant product and commercial presence across the undertreated and underserved gastrointestinal market, this acquisition offers a compelling opportunity for Valeant to create a strong platform for growth and business development."

Salix Board chairman and acting chief executive officer Thomas D’Alonzo said: "Combining Salix’s leading market position in gastroenterology with Valeant’s scale and resources will create a stronger and more diverse business committed to providing better health solutions to health care providers and their patients.

"We look forward to working with the Valeant team to ensure a smooth transition."

The acquisition is expected to yield more than $500m in annual cost savings from the cost base of the combined company, with synergies anticipated to be achieved within six months of completion.

Approved by the Boards of Directors of both companies, the transaction is subject to customary closing conditions and regulatory approval, and is expected to close in the second quarter of 2015.


Image: Valeant Pharmaceuticals has signed an agreement to acquire Salix Pharmaceuticals for $14.5bn. Photo: courtesy of ©2015 FreeDigitalPhotos.net / Wagging Dog Media Limited.