Medicis to Buy Inamed for $2.8 BillionMedicis to Buy Inamed for $2.8 Billion
March 1, 2005
In what some Wall Street wags have dubbed the “extreme makeover” deal, Medicis Pharmaceutical Corp. (Scottsdale, AZ) has announced its intention to acquire Inamed Corp. (Santa Barbara, CA) in a cash and stock deal valued at around $2.8 billion. Medicis is a specialty pharmaceutical company focusing on preparations for the treatment of dermatologic, aesthetic, and podiatric conditions, including acne, eczema, rosacea, and facial wrinkles. Inamed manufactures breast implants for cosmetic augmentation and reconstructive surgery, and surgical devices for the treatment of morbid obesity. It has recently become a distributor for facial aesthetics products, including Botox.
In a joint announcement issued by the companies, the newly formed entity is described as “positioned to take advantage of the fast-growing vanity market.” The company will distribute its products in more than 60 countries worldwide.
Under the terms of the agreement, Inamed stockholders will receive 1.4205 shares of Medicis common stock and $30 in cash for each share of Inamed. Based on closing prices and outstanding share volume when the deal was announced on March 18, the merger represents $75 in value per Inamed share, or a total valuation of approximately $2.8 billion.
Jonah Shacknai, chairman and CEO of Medicis, will assume the same titles in the new organization. Nick Teti, Inamed's chairman, president, and CEO will serve as vice chairman.
Shacknai, citing aging baby-boomers and the growing interest among all age groups in maintaining a healthy appearance, said “We are excited about this strategic business combination, which will create a global platform in the fast-growing aesthetics market. Joining forces with Inamed gives us the ability to offer our primary customers—plastic surgeons, cosmetic surgeons, and dermatologists—a broader array of complementary, highly effective products to meet the needs of their patients.”
Teti said the merger represents a “tremendous opportunity for our customers, employees, and shareholders. It enables us to create an even stronger company; one with a broad portfolio of complementary products, the combination of two dynamic sales forces, a strong research and development pipeline, and significant cash flow.”
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