2. Buyer: Valeant
Target: Bausch + Lomb
Price: $8.7 billion
Valeant Pharmaceuticals ($VRX) has made many a deal since pickup-thirsty CEO J. Michael Pearson took up the reins in 2007. But none so far has topped May's $8.7 billion buyout of eye-care giant Bausch + Lomb.
Under the deal, the Canadian pharma paid owner Warburg Pincus $4.5 billion for the company and forked over another $4.2 billion to settle B + L's outstanding debt. Keeping Bausch's name, Valeant then folded it into its existing--and rapidly expanding--eye business, estimating the combined company could squeeze $800 million in costs.
For Pearson, the deal put an exclamation point on a series of eye-care pickups he's orchestrated in recent years. Having targeted it as a high-growth, high-priority field, he's built Valeant's eye business through buyouts of companies like Aton and Eyetech.
But with a sizable product lineup ranging from injectables to inhalants, anesthetics to diagnostics, and anti-infectives to anti-inflammatories, Bausch is easily his most significant addition. It helped Valeant tally $5.8 billion in 2013 revenue, a 66% hike over the year prior. And it will have to keep the growth going if Pearson wants to hit his stated target of cracking the top 5 drugmakers worldwide: Sanofi ($SNY) currently holds the No. 5 spot, with a market cap of $134 billion compared with Valeant's $47 billion.
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-- Carly Helfand (email | Twitter)