"Valeant set to buy Bausch & Lomb for $8.7 billion; Acquisition furthers flurry of deal-making in health care field" by Michael J. De La Merced | New York Times, May 28, 2013
NEW YORK — Bausch & Lomb, the eye care company, agreed Monday to sell itself to Valeant Pharmaceuticals International of Canada for about $8.7 billion, sidestepping the lengthier process of an initial public offering.
Under the terms of the deal, Valeant will pay $4.5 billion to the investor group that owns Bausch & Lomb, led by the private equity firm Warburg Pincus. It will also spend about $4.2 billion to repay Bausch & Lomb’s debt.
The deal continues the flurry of deal-making in the health care industry, as companies seek to buy the growth they are hard-pressed to generate on their own....
The takeover also means a tidy payday for Warburg Pincus, which led a $4.5 billion leveraged buyout of Bausch & Lomb in 2007. The firm already benefited from a $772 million special dividend Bausch & Lomb paid out in March, the bulk of which went to its controlling investor group.
Through the deal, Warburg Pincus is expected to reap a return of as much as three times its original investment, according to a person briefed on the matter....
Everybody is getting rich, huh?
--more--"
Not a win for workers:
"Valeant to make cuts after purchase" Assoaciated Press, July 30, 2013
NEW YORK — Valeant said Monday that it will eliminate as much as 15 percent of its workforce and move Bausch + Lomb’s headquarters to New Jersey as part of its $8.7 billion purchase of the company.
In a letter to workers, Valeant said that after the deal closes, it will eliminate between 10 and 15 percent of positions companywide. That works out to between 1,850 and 2,775 people and is expected to include both Valeant and Bausch + Lomb workers.
Each with a life, family, friends.
The Canadian drug maker said it will remain based in Quebec, but it will move Bausch + Lomb’s Rochester, N.Y., headquarters to New Jersey. The US company’s three businesses will be combined into one unit.
Valeant said it will continue to operate all of its current US manufacturing locations, including those in Rochester. It added that it expects to receive regulatory approvals by early next month and hopes to close the deal as soon as possible after that.
--more--"
