US based pharmaceuticals giant Valeant International has acquired all of the outstanding common stock of Obagi Medical Products, Inc. for $19.75 per share in cash. The figure represented a 28% premium on Obagis closing share price prior to the acquisition announcement, with the transaction expected to close in the first half of 2013.
"The acquisition of Obagi will be a valuable supplement to Valeants current dermatology portfolio and will further build upon our growing aesthetics franchise," said J. Michael Pearson, Chairman and CEO of Valeant. "Obagi is a leader in the physician dispensed market and enjoys a strong brand perception among physicians. The addition of their products will not only strengthen and diversify our dispensed portfolio, but also expand our market presence with dermatologists and plastic surgeons."
Having achieved a total revenue of $120m last year, US based Obagi specialises in topical aesthetic and therapeutic skin health systems. Its product portfolio includes dermatology brands Obagi Nu-Derm, Condition & Enhance, Obagi-C Rx, ELASTIDerm and CLENZIDerm.
Valeant’s consumer products portfolio, meanwhile, features brands including Canadian cosmeceutical company Dr. Renaud, US skin care brand Dr.LeWinn’s and Australian personal care brand DermaVeen.