Dublin-headquartered Allergan to buy Zeltiq Aesthetics for $2.48bn

Deal expected to close in second quarter as Botox maker agrees to pay $56.60 per share

Allergan’s agreed price for Zeltiq Aesthetics’ shares represents a premium of 14.4 per cent on the company’s Friday close.

Allergan’s agreed price for Zeltiq Aesthetics’ shares represents a premium of 14.4 per cent on the company’s Friday close.

 

Botox maker Allergan said it would buy body-contouring product maker Zeltiq Aesthetics for about $2.48 billion (€2.34 billion), adding muscle to its line-up of products used to fight fat and smoothen wrinkles.

Zeltiq’s CoolSculpting System is approved by the US Food and Drug Administration and utilises a cooling mechanism to reduce the appearance of stubborn fat – which may not respond to diet or exercise – without disturbing surrounding tissue.

The Botox maker agreed to pay $56.50 per Zeltiq share, or a premium of 14.4 per cent to the company’s Friday close.

Zeltiq’s shares jumped 12.6 per cent to $55.65 in premarket trading on Monday.

Dublin-based Allergan, led by its acquisitive chief executive Brent Saunders, has orchestrated a flurry of deals since its $160 billion merger with Pfizer collapsed in April.

Earlier this month, Mr Saunders painted lofty expectations for its injection Kybella – used to diminish fat under the chin, leaving surrounding tissue largely unaffected – for 2017, and expressed an interest in continued deal-making.

In the three months ending December 31st, total medical aesthetic product sales accounted for 28 per cent of Allergan’s net revenue.

Allergan, which estimates that body contouring is a $4 billion market, said the transaction is expected to close in the second quarter. – (Reuters)