Valeant Pharmaceuticals Intl. has agreed to acquire a privately-held pharmaceutical company located in Brazil, for $56 million. The company primarily focuses on branded generics and OTC products and had annual sales of approximately $25 million in 2009. Over the past five years, the company has delivered a compound annual growth rate of approximately 15% in local currency, according to a Valeant statement. The transaction is expected to close in 2Q10.

“This latest transaction will be our second acquisition in Brazil this year,” stated J. Michael Pearson, Valeant’s chairman and chief executive officer. “We see strong synergies between these two acquisitions and our current operations in Brazil and believe that the combination of all three businesses will provide Valeant with expanded opportunities for growth in Brazil and enhance our Latin American franchise. This new business operation has had product sales that have grown in excess of 30% over the last year, while also achieving operating margins greater than 20%. Incorporating our new, state-of-the-art manufacturing plant in Indaiatuba will also provide us the ability to achieve significant growth and synergies across all three businesses.”