Valeant Pharmaceuticals has entered into a definitive agreement to acquire all outstanding common stock of Obagi Medical Products, Inc. for approximately $360 million in cash. The transaction is expected to close in 1H13 and to yield cost synergies of $40 million within six months of closing.
 
Obagi is a provider of topical aesthetic and therapeutic skin-health systems with a portfolio that includes dermatology brands Obagi Nu-Derm, Condition & Enhance, Obagi-C Rx, ELASTIDerm and CLENZIDerm. Obagi had revenues of approximately $120 million in 2012.
 
"The acquisition of Obagi will be a valuable supplement to Valeant's current dermatology portfolio and will further build upon our growing aesthetics franchise," said J. Michael Pearson, chairman and chief executive officer of Valeant. "Obagi is a leader in the physician dispensed market and enjoys a strong brand perception among physicians. The addition of their products will not only strengthen and diversify our dispensed portfolio, but also expand our market presence with dermatologists and plastic surgeons."