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Valeant Pharmaceuticals $15.4 billion acquisition of Salix Pharmaceuticals

1/4/2015
Acquisition finance, Private acquisition
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$ 15.4 billion

Completed

1/4/2015

Overview:

  • Canada-based Valeant Pharmaceuticals has completed its $15.4 billion of acquisition of US company Salix Pharmaceuticals.
  • Valeant successfully outbid competitor Endo International for Salix.
  • In response to the bidding challenge from Endo, Valeant increased its original offer from $158 per Salix share to $173.
  • Valeant raised $10.09 billion in acquisition financing from high yield notes issues. 
  • The offering consisted of $2 billion 5.375%, $3.25 billion 5.875%, €1.5 billion 4.5% and $3.25 billion 6.125% notes issues.
  • The joint bookrunners for the high yield offering were Deutsche Bank Securities, HSBC, Mitsubishi UFJ Financial Group, DNB Markets, SunTrust Robinson Humphrey, Barclays, Morgan Stanley, RBC Capital Markets and Citigroup.
  • Centerview Partners and JP Morgan acted as financial advisers for Salix on the acquisition.
  • The transaction was first announced in February 2015.

Kurt Stumpo - Journalist

Jurisdictions:

Canada
United States

Deal types:

Acquisition finance
Private acquisition

Practice areas:

Capital markets : High yield
M&A

Governing law:

United States

Industry sector:

Pharmaceuticals and life sciences

Firms:
Cadwalader Wickersham & Taft

Party: Salix Pharmaceuticals (Target)

Lawyers: Christopher Cox, Greg Patti

Cahill Gordon & Reindel

Party: Deutsche Bank Securities (Joint bookrunner)

Party: HSBC (Joint bookrunner)

Party: Mitsubishi UFJ Financial Group (Joint bookrunner)

Party: DNB Markets (Joint bookrunner)

Party: SunTrust Robinson Humphrey (Joint bookrunner)

Party: Barclays (Joint bookrunner)

Party: Morgan Stanley (Joint bookrunner)

Party: RBC Capital Markets (Joint bookrunner)

Party: Citigroup (Joint bookrunner)

Lawyers: John Tripodoro, Noah Newitz, Timothy Howell, William Hartnett

Debevoise & Plimpton

Party: JP Morgan (Financial adviser)

Lawyer: Andrew Bab

Skadden Arps Slate Meagher & Flom

Party: Valeant Pharmaceuticals (Issuer)

Lawyers: Michael Zeidel, Ryan Dzierniejko, Stephen Arcano

Sullivan & Cromwell

Party: Valeant Pharmaceuticals (Acquirer)

Lawyers: Alan Sinsheimer, Alison Ressler, Eric Krautheimer, Sarah Payne

Willkie Farr & Gallagher

Party: Centerview Partners (Financial adviser)

Lawyers: Laura Delanoy, Steven Seidman

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