Bausch + Lomb to acquire Ista for $500M
Bausch + Lomb Inc. (Rochester, N.Y.) will acquire fellow ophthalmic company Ista Pharmaceuticals Inc. (NASDAQ:ISTA) for $9.10 per share, or about $500 million. The price is a 9% premium to Ista's close of $8.38 on Monday, before the deal was announced. It is a 134% premium to Ista's close of $3.89 on Dec. 16, 2011, before Valeant Pharmaceuticals International Inc. (TSX:VRX; NYSE:VRX) made public an unsolicited tender offer to acquire Ista for $6.50 per share. Bausch + Lomb plans to finance the acquisition with a combination of cash and debt.
Ista reported $160.3 million in revenue for 2011. Its marketed products include Bromday bromfenac to treat ocular inflammation and pain following cataract surgery and Bepreve bepotastine to treat ocular itching associated with allergic conjunctivitis. The deal has been unanimously approved by the boards of both companies and is expected to close in 2Q12. Goldman Sachs advised Bausch + Lomb, while Cleary Gottlieb Steen & Hamilton was legal counsel. Greenhill advised Ista, while Stradling Yocca Carlson & Ruth and WilmerHale were legal advisors. Ista was up $0.08 to $8.38 on Monday. ...