Posted by: youngragingbull | May 27, 2013

Valeant to buy eye-care firm for $8.7B

Canadian pharmaceutical giant Valeant has agreed to buy eye care product maker Bausch + Lomb for $8.7 billion, the two companies announced Monday.

Laval, Que.-based Valeant will acquire Bausch & Lomb in a transaction that Valeant says will achieve $800 million in cost savings by the end of next year.

Bausch + Lomb has numerous eye care product lines, including contact lenses, surgical goggles and eye drops. The company expects to take in $3.3 billion next year across all of its product lines.

Valeant will finance the transaction through a combination of debt and up to $2 billion of new shares.

In afternoon trading on the TSX, shares of Valeant jumped more than 10% to an all-time high of $95.82 as investors cheered the transaction.

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