Valeant Buys Obagi Medical for $360 Million

Tickers in this article: OMPI VRX

MONTREAL (TheStreet) -- Valeant Pharmaceuticals (VRX) is acquiring Obagi Medical Products (OMPI) , a maker of dermatology and skin-care products for $360 million in cash, the companies announced Wednesday.

Under terms of the deal, Obagi will be acquired for $19.75 per share, which represents a 28% premium to the stock's Tuesday close. Valeant expects the acquisition, once completed, to be immediately accretive to earnings.

Valeant is a specialty pharmaceuticals company that has grown aggressively through acquisitions over the past several years, starting with the merger between itself and Canadian drug maker Biovail in December 2010. Since then, Valeant has expanded its pipeline of generic and branded pharmaceutical products through multiple acquisitions.

Obagi markets a portfolio of prescription skin-care products that generated $120 million in revenue last year.

Ahead of the deal announcement, Valeant shares closed Tuesday night at $71.44.

-- Reported by Adam Feuerstein in Boston.