Valeant Pharmaceuticals International Inc. has acquired global eye health company Bausch & Lomb Holdings, whose pharmaceutical headquarters are based in Madison, for $8.7 billion in cash.
The acquisition's impact on Bausch & Lomb's Morris County facility, which manages the company's prescription brands, generics and over-the-counter drugs business, was not immediately clear.
The company arrived at 7 Girlada Farms in 2009 with a ceremony attended by then-Gov. Jon Corzine. Rochester, N.Y-based Bausch & Lomb also operates two additional segments: vision care and surgical.
Under terms of the agreement, Valeant will pay $4.5 billion to an investor group led by Warburg Pincus and about $4.2 billion to repay Bausch & Lomb's outstanding debt.
Bausch & Lomb will retain its name and become a division of Valeant.
Valeant, a multinational pharmaceutical company based in Quebec, with U.S. headquarters in Bridgewater, said it expects to achieve at least $800 million in annual cost savings by the end of 2014, according to a news release Monday.
Valeant spokesman Jonathan Doorley said it is too early to discuss specific details about its integration plan, "but our goal is to retain the best talent from both companies."
Completion of the deal is subject to regulatory approval and customary closings, expected in the third quarter of this year.
The acquisition is expected to expand Valeant's pipeline of products and improve its ability to capitalize on growing eye-health trends. Valeant makes dermatological and neurological products and branded generics.
"With this transaction, Valeant will be a worldwide leader in both dermatology and eye health," Valeant CEO Michael Pearson said in a statement.
Pearson told Bloomberg News that the number of jobs that may be eliminated to reduce overlap and duplication hasn't been determined. Pearson said many savings would be achieved through non-personnel reductions as well, including purchasing and real estate "synergies."
The transaction will be financed with debt and about $1.5 billion to $2 billion in new equity.