Monday, 13 February: Allergan agreed to pay US$2.48 billion in cash for Zeltiq Aesthetics Inc, which will add a fat-freezing device to the company’s line-up of aesthetic products.
Allergan said it would benefit from the cross-selling opportunities for consumers of Zeltiq’s CoolSculpting system, which uses cooling to kill fat cells, as well as customers of its own facial injectable products.
Allergan agreed to pay $56.50 per Zeltiq share, or a premium of 14.4% to the company’s Friday close.
Zeltiq’s shares rose 12.8% to $55.72 in midday trading on Monday (13 February, 2017).
Dublin-based Allergan, led by its Chief Executive Brent Saunders, has struck a number of deals since its $160 billion merger with Pfizer Inc collapsed in April. Those have included its $2.9 billion purchase of regenerative medicine business LifeCell Corp and the $1.5 billion acquisition of biotech company Vitae Pharmaceuticals.
Earlier this month, Saunders set lofty expectations for Allergan’s injectable Kybella (marketed as Belkyra in Australia) – used to diminish fat under the chin, leaving surrounding tissue largely unaffected – for 2017, and expressed an interest in continued deal making.
In the three months ended 31 December 31, 2016, medical aesthetic product sales accounted for 28% of Allergan’s net revenue. Allergan, which estimates that body contouring is a $4bn market, said the transaction is expected to close in the second half of 2017.
Source: reuters.com (Deals)