A colossal drug industry Allergan has grasped a deal to acquire Zeltiq Aesthetics for USD 2.5 billion, raising its portfolio of treatments to improve the body’s appearance.
Allergan, whose therapies also include wrinkle treatment Botox, said that it would pay USD 56.50 per share for Pleasanton, Calif.-based Zeltiq, which has trained its attention on what it calls the flourishing market for “body contouring.”
Allergan had publicized that it would purchase Acelity’s LifeCell, which produces various products used for breast reconstruction and soft tissue repair, and its aesthetics business — including Botox, line plasters, implants and eye care – will probably drive much of the company’s growth in the upcoming years. Allergan is crafting a “world-class aesthetics business,” Chief Executive Brent Saunders said. “With a best-in class CoolSculpting system, our contributions to plastic surgeons, dermatologists, and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their practices,” he said. Zeltiq Aesthetics shares, which were stopped before the announcement, have surged 25.4% over the last three months.
Zeltiq’s treatments contain a non-surgical process called CoolSculpting, which Allergan said uses an approved and patented cooling system to “induce a natural, controlled elimination of fat cells without affecting surrounding tissue.”
After the deal was publicized, Zeltiq shares shot up 12.6% to USD 55.60 in pre-market trading. Allergan shares were down 0.1% to USD 246.10.
The acquirement marks the latest in a series of contracts for Ireland-based Allergan following the company’s scurried bid to acquire New York-based Pfizer. That tie-up was upended when the Obama administration solidified the rules to prevent U.S. corporations from engineering deals to move their tax headquarters overseas.
Moelis & Company is performing as financial advisor to Allergan, and Debevoise & Plimpton LLP is acting as lead legal counsel. Guggenheim Securities is acting as financial advisor to ZELTIQ, and Cooley LLP is serving as legal counsel.