Valeant Pharmaceuticals International, Inc. (NYSE/TSX: VRX) has agreed to sell its Obagi Medical Products business to Haitong International Zhonghua Finance Acquisition Fund I, L.P. for US $190 million.
“The sale of Obagi marks additional progress in our efforts to streamline our operations and reduce debt,” Joseph C. Papa, chairman and CEO, Valeant. “As we continue to transform Valeant, we will remain focused on the core businesses that will drive high value for our shareholders.”
Valeant acquired Obagi Medical Products, Inc. (formerly NASDAQ: OMPI) in April 2013 for US $437.1 million.
Obagi is a specialty pharmaceutical company that develops, markets, and sells topical aesthetic and therapeutic skinhealth systems. Obagi products are designed to help minimize the appearance of premature skin aging, skin damage, hyperpigmentation, acne and sun damage and are primarily available through dermatologists, plastic surgeons, medical spas and other skin care professionals.
Morgan Stanley & Co. LLC served as financial advisor to Valeant, and Norton Rose Fulbright acted as legal advisor to Valeant.
LPs of Haitong International Zhonghua Finance Acquisition Fund I, L.P. include China Regenerative Medicine International Limited (SEHK: 8158). Obagi Medical Products is the fund’s first investment. General Partner of the fund is owned as to 50% by Haitong International New Energy IX and as to 50% by Zhonghua Financial Holdings Limited.
China Regenerative Medicine International Limited (中國再生醫學國際有限公司) is engaged in the research, development and commercialization of innovative bio-medical, healthcare products and medical techniques. CRMI operates seven production plants in mainland China and Hong Kong, and the business is organized across four strategic areas, encompassing tissue engineering, cell therapy, cosmetics and hospital management.
photo credit: Obagi