Valeant Pharmaceuticals International Inc (TSX, NYSE: VRX) has wrapped up the sale of its iNova Pharmaceuticals affiliate to Australasian private equity firm Pacific Equity Partners and U.S. private equity firm Carlyle Group. The deal, announced in June, reflected a purchase price of US$930 million in cash. Valeant acquired iNova in 2011 from Archer Capital and Ironbridge Capital for about US$623 million. The Laval, Québec-based specialty pharmaceutical company decided to sell the business to pay down debt.
Valeant Pharmaceuticals Completes Sale Of iNova Pharmaceuticals To Pacific Equity Partners And The Carlyle Group
LAVAL, Quebec, Sept. 29, 2017 /CNW/ — Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) (“Valeant” or the “Company”) today announced that it has completed the sale of the iNova Pharmaceuticals (“iNova”) business to a company jointly owned by funds advised and managed by Pacific Equity Partners and The Carlyle Group for $930 million in cash. Valeant will use net proceeds of approximately $920 million from the sale to repay term loan debt under its Senior Credit Facility.
“With the closure of the iNova sale, we’ve achieved another milestone in our efforts to reduce debt and simplify our portfolio,” said Joseph C. Papa, chairman and CEO, Valeant. “As we continue to deliver on our commitments, we will remain focused on investing in our core businesses that will drive growth and where we believe we can make the biggest impact on the lives of patients.”
Additionally, today the Company is utilizing cash from operations to repay $100 million of amounts outstanding under its revolving credit facility. Following the closure of the sale of the Obagi Medical Products business, which remains on track to close in 2017, Valeant expects it will exceed its August 2016 commitment to pay down $5 billion in debt from divestiture proceeds and free cash flow before February 2018.
The Company estimates that the expected revenue and Adjusted EBITDA (non-GAAP) from the iNova business in the fourth quarter of 2017 would have been approximately $65 million and $35 million, respectively.
Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics. More information about Valeant can be found at www.valeant.com.
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