Valeant Pharmaceuticals will buy Synergetics USA, a eye surgery product maker for $192 million.
In addition to the upfront cash payment, Synergetics stockholders will receive additional cash payments of up to $1.00 per share if specified sales milestones are achieved following the closing. The transaction is expected to close in the fourth quarter of 2015 and is subject to customary closing conditions and regulatory approvals.
"The addition of Synergetics' portfolio of instruments and devices will further enhance Bausch + Lomb's presence around the world in the rapidly evolving field of vitreoretinal surgery," stated J. Michael Pearson, chairman and chief executive officer of Valeant. "We are committed to delivering a valuable and broad array of surgical devices and instruments to serve the needs of the surgical retina community and their patients."
"We are pleased to reach an agreement with Valeant, which is a logical partner to maximize our Company's growth opportunities and, importantly, this agreement creates immediate and compelling value for our shareholders," said David M. Hable, president and chief executive officer of Synergetics. "The combined strengths of both companies will expand the breadth of our offerings and create a more effective competitor that is better able to meet our customers' needs in the ophthalmology and neurosurgery markets."
Under the terms of the agreement, Valeant will promptly commence a tender offer to acquire all outstanding shares of Synergetics' common stock for $6.50 per share in cash plus one contingent value right entitling the stockholder to receive up to $1.00 per share if specified sales thresholds for Synergetics are achieved following the closing.
Synergetics USA Inc., based in O'Fallon, Missouri, had $64.8 million in revenue in the fiscal year that ended on July 31, 2014. It said $35.2 million came from ophthalmic products and the rest came from surgical generators and other products.
In April, Valeant paid $11.11 billion for Salix Pharmaceuticals, gaining products including Pepcid and Zegerid for ulcers and the constipation treatment Relistor. In August it agreed to buy Sprout Pharmaceuticals for $1 billion. That announcement came days after the Food and Drug Administration approved Sprout's drug Addyi, the first prescription drug intended to boost sexual desire in women. Valeant Pharmaceuticals International Inc. had $8.26 billion in revenue in 2014.