Valeant to acquire Sanitas for EUR314 million

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today announced that it has agreed to acquire AB Sanitas (NASDAQ OMX: SAN1L) for approximately EUR314 million in cash.  The major shareholders of Sanitas have agreed to sell Valeant 87.2% of the outstanding shares of Sanitas, with at least 82.6% of the outstanding shares required to be delivered at closing.  After the acquisition of this controlling block of shares, Valeant would commence a mandatory tender offer to acquire the remaining minority interest.  The total purchase price is expected to be approximately EUR314 million in cash, in addition to the assumption of approximately EUR50 million in debt. The exact purchase price shall be calculated and announced at closing.

Sanitas, a publicly-traded specialty pharmaceuticals company based in Kaunas, Lithuania, has a broad branded generics product portfolio consisting of 390 products in nine countries throughout Central and Eastern Europe, primarily Poland, Russia and Lithuania.  Sanitas has in-house development capabilities in dermatology, ophthalmology and hospital injectables and a robust pipeline of internally developed and acquired dossiers.  Annual revenues for Sanitas are expected to be over EUR100 million in 2011, with an approximate revenue growth rate in the low double digits over the coming years.

The purchase of the controlling interest, which is subject to customary closing conditions, including certain merger clearances and there being no material adverse change, is expected to close in the third quarter of 2011 and the mandatory tender offer is expected to close in the fourth quarter of 2011.  The transaction is expected to be immediately accretive to Valeant.

"The acquisition of Sanitas should provide Valeant with an exciting opportunity to expand our European branded generics product portfolio with dermatology and hospital injectable compounds that have a strong track record of growth and profitability," said J. Michael Pearson, chairman and chief executive officer of Valeant.  "With 80% of the Sanitas portfolio consisting of non-reimbursed products with limited exposure to government pricing pressures, Valeant will be in a key position to continue our expansion into Central and Eastern Europe."

SOURCE Valeant Pharmaceuticals International, Inc.