Valeant Buys Salix for Total Value of $14.5 Billion
Valeant Pharmaceuticals International Inc. and Salix Pharmaceuticals Ltd. have entered into an agreement under which Valeant will acquire the outstanding common stock of Salix for $158 per share in cash, or a total enterprise value of about $14.5 billion, according to a press release.
Salix Pharmaceuticals is known for its gastrointestinal portfolio of 22 products, including prescription brands Xifaxan, Uceris, Relistor and Apriso.
The combination is expected to yield greater than $500 million in annual cost savings from the cost base of the combined company, the release said. Synergies are expected to be achieved within six months of close, primarily from reductions in corporate overhead and R&D rationalization, with the cost to achieve these synergies to be approximately 65%.
The transaction is expected to close in the second quarter of 2015.
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