Monday, June 21, 2010

Valeant Merges With Biovail

Aliso Viejo-based pharmaceuticals firm Valeant said today that it has agree to merge with Biovail, a Toronto-based pharmaceuticals developer. According to the firms, the deal calls for Valeant stockholders to receive $16.77 in cash per share plus 1.7809 shares of Biovail common stock, for each share of Valeant Common stock they own. The new company will be called Valeant Pharmaceuticals International, Inc. The companies said the combined firm will have pro forma revenues of $1.75 billion, for the 12 months ending March 31, 2010, with cash flow from operations of $575 million. The firms said they expect to generate at least $175M in annual cost synergies in the second year. To fund the merger, the firms said they have scored a commitment of $2.8 billion in term loans from Goldman Sachs, Morgan Stanley & Co., and Jeffries & Company. After the merger, the firms said they will be headquartered in Mississauga, Ontario. The company did not discuss how the merger would affect the firm's Aliso Viejo operations.

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