Based in New York, Bausch + Lomb manages three businesses, namely Pharma consisting of prescription brands, generics and over-the-counter (OTC), Vision Care comprising contact lenses and solutions, and Surgical involving intraocular lenses and surgical equipment.
Around $4.5bn, from the total cash consideration, will be given to Warburg Pincus’ led investor group and the remaining $4.2bn will be used to refund Bausch + Lomb’s outstanding loans.
Valeant chairman and CEO J Michael Pearson said that the acquisition will boost its capabilities in ophthalmic pharmaceuticals, contact lenses and lens care products, and ophthalmic surgical devices and instruments.
Following the completion of the proposed acquisition, the acquired entity will retain its brand-name and operate as a division of Valeant, while its current ophthalmology businesses will be integrated into the Bausch + Lomb division.
Bausch + Lomb CEO Brent Saunders will join Valeant in an advisory role to assist in ensuring a flawless transition and integration, while board of directors chairman Fred Hassan will join Valeant’s board.
Goldman Sachs Bank US has provided debt financing to Valeant and it is believed that the transaction will provide at least $800m in annual cost savings by end of 2014 to the drug maker.
Skadden, Arps, Slate, Meagher & Flom and Osler, Hoskin & Harcourt acted as Valeant’s legal counsel, and Bausch + Lomb was served by Cleary Gottlieb Steen & Hamilton. Goldman, Sachs & Co and J P Morgan Securities acted as financial advisors to Bausch + Lomb.