Merz makes competing offer for Obagi
Merz GmbH & Co. KGaA (Frankfurt, Germany) made public on Tuesday an offer to acquire skin disorder company Obagi Medical Products Inc. (NASDAQ:OMPI) for $22 per share in cash, or about $383.6 million based on 17.4 million Obagi shares outstanding as of March 6. The price is an 11% premium to the $19.75 price under which Valeant Pharmaceuticals International Inc. (TSX:VRX; NYSE:VRX) is acquiring Obagi. Valeant's price values Obagi at about $344.3 million. Obagi and Valeant entered into a definite merger agreement last month, and Obagi's board unanimously approved the merger, which is slated to close this half (see BioCentury Extra, March 20).
Merz -- which markets products for dermatology, as well as for neurological and metabolic disorders -- said Obagi would expand Merz's U.S. market presence and "strengthen and diversify its dermatology portfolio." Obagi markets skin disorder products and reported 2012 net sales of $120.7 million. Deutsche Bank is advising Merz. Obagi said its board will evaluate Merz's offer. Valeant declined to comment. ...