Provides Canadian firm with a beachhead in Asia Pacific and South Africa
Canada-based Valeant Pharmaceuticals is to buy iNova, a private pharmaceutical group, from Australian private equity firms Archer Capital and Ironbridge for up to A$700m (US$694m; €515m).
Valeant will pay A$625m upfront and up to an additional A$75m in potential milestones based on the success of pipeline activities, product registrations and overall revenue.
The deal is subject to certain closing conditions and post-closing adjustments.
iNova has a diversified portfolio of prescription and OTC pharmaceutical products in the Asia Pacific region and South Africa, including weight management brand Duromine, and OTC brands in the cold and cough area, such as Difflam and Duro Tuss.
iNova's total revenues in 2011 are expected to be approximately A$200m, with an operating margin of around 40%.
‘This transaction not only transforms our operations in the Australian market, but provides us with a beachhead in both Southeast Asia and South Africa,’ said J. Michael Pearson, Valeant’s chairman and chief executive.
‘iNova has a talented management team that has created a strong business operation ahead of an intended initial public offering and with the current market softness, Valeant has a unique opportunity to acquire iNova and integrate our Australian operations into the broader iNova Asia Pacific business.’