Valeant Pharmaceuticals International Inc. (VRX), will acquire Bausch & Lomb Holdings Inc., the eye-care company owned by Warburg Pincus LLC, for about $4.5 billion in cash. Bausch and Lomb has presence in over 100 countries and employs over 11,000 people. Bausch and Lomb is expected to add $3.3 b to Valeant's topline and $720m to its EBITDA. The transaction values Bausch and Lomb at 2.6x EV/Sales or 12x EV/EBITDA
Valeant also will spend $4.2 billion to repay Bausch & Lomb’s debt, bringing the total value to $8.7 billion, the companies said in a statement today. Bausch & Lomb, bought by Warburg in a 2007 leveraged buyout, filed in March for an initial public offering after an earlier effort to sell itself for at least $10 billion stalled, people familiar with the matter said at the time.
The purchase will add to Valeant’s cash earnings per share immediately, according to the statement. Valeant expects to achieve at least $800 million in annual cost savings by the end of next year, the companies said.