Valeant Pharmaceuticals International, Inc. (VRX) recently announced that it has completed the previously announced acquisition of Bausch + Lomb Holdings Incorporated.
We remind investors that the acquisition was announced in May 2013. Valeant paid $8.7 billion in cash for the acquisition.
With a history of 160 years, Bausch + Lomb currently has recognized prescription and over the counter (:OTC) brands such as Besivance, Lotemax, Ocuvite and PreserVision and vision care brands such as Biotrue ONEday, PureVision, renu and Boston.
The company also has surgical brands such as enVista, Storz, Stellaris and VICTUS under its extensive portfolio.
The acquisition is expected to generate annual cost savings of at least $800 million by the end of 2014, of which $500 million is expected in 2013.
The acquisition will strengthen Valeant’s ophthalmology portfolio. Bausch + Lomb’s three business units will be merged into a new unit, Bausch + Lomb Eye Health.
We are encouraged by the company’s integration efforts.
Valeant will reduce its headcount by 10% – 15%, primarily in the U.S. and Canada. Moreover, Valeant is planning to consolidate locations to streamline operations while improving efficiencies. As per this plan, Valeant will move its newly formed business unit, Bausch + Lomb Eye Health, to N.J. along with its Medicis business.
We note that Valeant has been quite active on the acquisition front. In Apr 2013, Valeant acquired Obagi Medical Products for $440 million following a bidding war with Merz Pharma Group.
In Feb 2013, Valeant acquired Natur Produkt International for $137 million. In Dec 2012, Valeant acquired the entire outstanding common stock of Medicis Pharmaceutical Corporation for approximately $2.6 billion.
We look forward to further updates on integration plans from Valeant when it announces its second quarter results.
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