Another day, another small bolt-on acquisition for Allergan.
The maker of wrinkle-filler Botox said on Monday it has agreed to buy Zeltiq, the maker of CoolSculpting machines that freeze away fat cells for $2.47bn cash.
Allergan’s offer of $56.50 a share represents a 14 per cent premium to Zeltiq’s closing price on Friday and is the latest in a string of small deals engineered by chief executive Brent Saunders after the US government thwarted the company’s planned $160bn merger with Pfizer last April.
Allergan struck a deal to buy regenerative medicine company LifeCell for $2.9bn in December and agreed to pay as much as $1.7bn for Tobira Therapeutics, a San Francisco-based bio-pharmaceutical start-up that specialises in liver diseases back in September. It also splashed out $639m to acquire Vitae Pharmaceuticals, a drugmaker focused on medicines for skin conditions.
The company said on Monday that the deal for Zeltiq will be earnings accretive immediately.
CoolSculpting works by gently cooling targeted fat cells in the body to induce a natural, controlled elimination of fat cells without affecting surrounding tissue, Allergan explained in a statement, adding that body contouring is a $4bn a year market.
“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,” said Mr Saunders.