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June 8, 2017

Valeant Agrees to Sell iNova Pharma Business to Carlyle and Pacific Equity for $930M

  • Valeant has agreed the $930 million sale of its iNova Pharmaceuticals business to a company owned jointly by fund managers Pacific Equity Partners and The Carlyle Group. Valeant says it will use proceeds from the sale to repay existing term loan debt under its Senior Secured Credit Facility. The firm's long-term debt amounted to $26 billion at the end of March 2017, according to its most recent quarterly report.

    "The sale of iNova is part of the company's ongoing efforts to both simplify our operating model and strengthen our balance sheet," commented Joseph C. Papa, Valeant chairman and CEO. "We will continue to evaluate opportunities that will enable us to deliver on our commitments and unlock value for shareholders." Subject to regulatory approvals, the transaction is projected to close during the second half of 2017. 

    iNova markets prescription and over-the-counter products for weight and pain management, cardiology, and coughs and colds in more than 15 countries. Valeant maintains the business has a leading market position in Australia and South Africa and an established platform in Asia. The firm stated that it will keep a strong presence in key iNova territories through its Bausch & Lomb franchise. Within the last couple of days, however, Bloomberg reported that Valeant was in talks to sell the surgical products business of the Bausch & Lomb subsidiary to Carl Zeiss Meditec.

    Carlyle and Pacific Equity stated that they aim to invest in iNova to grow and expand the business. “We intend to build on iNova’s diversified healthcare platform by investing in product development, geographical expansion, marketing staff, and potential acquisitions of additional brands,” commented David Brown, managing director of Pacific Equity Partners.

    David Bluff, managing director of The Carlyle Group, added, “We are very pleased to have finalized an agreement to acquire iNova. This is a strong company with great products with growth opportunities particularly in new markets. … We look forward to supporting iNova with our industry expertise and global resources and will continue working with the management, suppliers, and customers of the business to deliver innovative products and quality customer service.”

    The sale of iNova follows Valeant’s sale in January of its majority stake in Dendreon to Sanpower Group and the sale of specified skincare brands to L’Oréal for a combined $2.1 billion.

     

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