Bausch + Lomb, Ista deal
Bausch + Lomb will acquire fellow ophthalmic company Ista for $9.10 per share in cash, or about $500 million. The price is a 9% premium to Ista's close of $8.38 on March 26, 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, Mississauga, Ontario) made public an unsolicited tender offer to acquire Ista for $6.50 per share. Bausch + Lomb intends to finance the acquisition with a combination of cash and debt (see BioCentury, Dec. 19, 2011).
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 this quarter. Goldman Sachs advised Bausch + Lomb, and Cleary Gottlieb Steen & Hamilton was legal counsel. Greenhill advised Ista, and Stradling Yocca Carlson & Rauth and WilmerHale were legal counsel. ...