Valeant Pharmaceuticals International Inc. has entered into a definitive agreement to acquire Obagi Medical Products Inc., the professional skin-care company founded by Beverly Hills-based dermatologist Zein Obagi, who sold his controlling interest to outside investors in 1997.
Under the terms of the agreement, Valeant will acquire all the outstanding common stock of Obagi for $19.75 a share in cash, or $360 million. Obagi shares closed at $15.39 on the Nasdaq on Tuesday. Obagi’s board has unanimously approved the offer, which the company stated represents a 40 percent premium to its 30-day stock price. Both companies expect the transaction to be completed in the second quarter of this year.
The Obagi brand, founded in 1988 with the creation of the Obagi Nu-Derm System, is only available through medical professionals.