"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."
Obagi Medical Products is a global specialty pharmaceutical company founded by leading skin care experts in 1988. '
The company currently estimates that the full-year 2017 revenue and adjusted EBITDA (non-GAAP) for the Obagi business would have been approximately $85 million and $30 million, respectively.
In this transaction, Morgan Stanley & Co. LLC served as financial advisor to Valeant, and Norton Rose Fulbright acted as legal advisor to Valeant.
The transaction is expected to close in the second half of 2017, subject to customary closing conditions, including receipt of applicable regulatory approvals.
Valeant will use proceeds from the sale to permanently repay term loan debt under its senior secured credit facility.