NEWS
09/02/2015 09:16 EDT | Updated 09/02/2016 01:12 EDT

Valeant to buy U.S. surgical device supplier to enhance Bausch + Lomb business

LAVAL, Que. — Valeant Pharmaceuticals International, Inc. (TSX:VRX) has made a friendly deal to acquire Synergetics USA Inc., a supplier of precision surgical devices that Valeant says will enhance its Bausch and Lomb eye-care business.

Valeant is offering US$6.50 per share in cash per Synergetics share (NASDAQ:SURG), which is 48 per cent above the pre-announcement price for the stock, and up to $1 per share of additional payments if certain sales milestones are achieved.

In pre-market trading, Synergetics shares rose to US$6.63 from Tuesday's closinig price of US$4.39, which valued the company at US$110 million prior to Valeant's announcement.

David Hable, Synergetics president and CEO, said the offer is good for its shareholders and customers.

"The combined strengths of both companies will expand the breadth of our offerings and create a more effective competitor that is better able to meet our customers' needs in the ophthalmology and neurosurgery markets," Hable said in a joint statement with Valeant. 

One of the conditions of the friendly deal is that Valeant receive a majority of Synergetics shares through a tender offer.

The Canadian Press