Allergan set to bolster ‘medical aesthetics’ unit with $2.5 billion Zeltiq deal
Allergan, the owner of Botox, has expanded its stake in the ‘medical aesthetics’ business by acquiring Zeltiq Aesthetics. Zeltiq has one FDA-approved product which is its proprietary controlled-cooling technology platform, which is used to reduce fat cells in the body.
The technology works by cooling an area of fat, without effecting surrounding tissue, which stimulates the body to naturally destroy the fat in that area. The product is called CoolSculpting and the deal to purchase it works out at $56.50 per share of Zeltiq, which works out at approximately $2.475 billion.
“The acquisition of Zeltiq is highly complementary and strategic to Allergan. By adding the best-in-class body contouring CoolSculpting System to our best-in-class facial aesthetics, plastic surgery and regenerative medicine offerings we are creating a world-class aesthetics business,” said Brent Saunders, Chairman and CEO of Allergan. “With CoolSculpting, our offerings to plastic surgeons, dermatologists and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their practices, putting Allergan in a unique position to provide expanded customer service, and help meet the needs of patients.”
Saunders has led Allergan on numerous acquisitions since the mega-merger Pfizer deal fell through last year. The number of deals has progressed well into double-digits with the Zeltiq deal, with Allergan previously shelling out a fraction more to acquire LifeCell at the end of last year.
The deal is still subject to the approval of Zeltiq shareholders.
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