Medicis Pharmaceutical Corp, a maker of drugs to treat skin conditions, on Monday said it agreed to acquire breast implant maker Inamed Corp for $2.8 billion in cash and stock. The new company will be positioned to take advantage of the fast-growing vanity market fuelled by demand from aging baby boomers and other image-conscious consumers. Under the terms of the deal, Inamed stockholders will receive 1.4205 shares of Medicis common stock and $30 in cash for each share of Inamed common stock. Based on Medicis' latest closing price, the deal is worth $75 per Inamed share, or about $2.8 billion overall, the companies said.
The deal represents a 13 percent premium over Inamed's Friday close of $66.24 on the Nasdaq.
Medicis specialises in treatments for skin and foot conditions including acne, eczema and psoriasis, while Inamed makes breast implants, wrinkle treatments and products to treat obesity. Both companies cater to plastic surgeons, cosmetic surgeons and dermatologists.
The combined company will have annual revenue in excess of $700 million, operations in more than 12 countries, businesses in over 60 countries, and about 1,500 employees. "With the large number of aging baby boomers and the focus by all age groups on maintaining a healthy and youthful appearance and self-image, we will be poised to continue delivering value and revenue growth," said Jonah Shacknai, chief executive of Medicis, in a statement.
The companies expect the transaction to close by the end of 2005. Deutsche Bank Securities is financial advisor to Medicis; J.P. Morgan is financial advisor to Inamed.
Santa Barbara, California-based Inamed last week disclosed that the Securities and Exchange Commission has begun a formal private investigation related to one style of its silicone gel-filled breast implants.
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