Valeant Pharmaceuticals to purchase Solta Medical
Valeant Pharmaceuticals International Inc., which specializes in facial injectables and other skin care products, recently announced that it would be acquiring Solta Medical Inc., according to a recent article on Manufacturing.net. The deal will cost approximately $250 million.
Solta is in a similar industry as Valeant, and makes medical devices for a number of different aesthetic applications. For example, Solta is responsible for products that use the Thermage CPT system, which generates radiofrequency energy to tighten skin and reduce the appearance of wrinkles.
"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," Valeant Chairman and CEO Michael Pearson said in a statement.
Solta has not been without problems, however. Back in August, CEO Steve Fanning announced that he would resign as a result of "unacceptable" company performance in 2013. This deal may help the company right itself. As the news source reported, Valeant will pay $2.92 per Solta share, which is a significant boost over the price of $2.09 that shares are trading at currently.in fact, Solta shares rose by 81 cents as soon as the news became public. For its part, Valeant saw share prices rise to $108.82.
Even troubled companies can have a lot to offer in these kind of technology acquisition deals. That's why it is important for a mergers and acquisitions firm to help parties negotiate an arrangement that will benefit both of them in the long run.