By Everdeen Mason
Valeant Pharmaceuticals International Inc. (VRX) agreed to
acquire medical device company Solta Medical Inc. (SLTM) for $250
million to increase its offerings in the growing aesthetic medicine
market.
Valeant will offer Solta shareholders $2.92 a share, a 40%
premium to its Friday close of $2.09.
Solta shares jumped 21% in premarket trading to $2.52 a share.
The stock hasn't traded above the offer price since October 2012.
Through Friday's close, Solta's stock is down 23% in the past 12
months.
Solta is known for developing medical devices for aesthetics,
including skin tightening treatment Fraxel, dermatological product
Clear + Brilliant and fat loss system Liposonix. While the market
for dermatological treatments has grown, the company has posted
revenue below analyst expectations in recent periods. Solta
recently unveiled restructuring plans in November that includes a
reduction in work force.
Meanwhile, Valeant seeks to add Solta's products to its existing
portfolio of skin-care treatments.
"Solta's leading aesthetic devices are a natural fit with
Valeant's facial injectables, professional skin care products and
physician dispensed products, and will establish Valeant in a
strong leadership position as we continue to build our presence in
the aesthetic market," said Valeant Chief Executive J. Michael
Pearson.
The deal is expected to close in the fiscal first quarter and
will be immediately accretive to Valeant's earnings per share, the
company added.
Valeant has been making acquisitions to boost its profile in the
eye-care and medical device industries. Most recently, the company
acquired Montreal-based Bausch & Lomb Holdings Inc. for $8.7
billion.
Valeant's shares closed Friday at $106.83. The stock is up 81%
in the past 12 months.
Write to Everdeen Mason at everdeen.mason@wsj.com
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