A rep from Revitanail once described the effectiveness of the product by telling me that following its use, women have cried when they see a lifetime of brittle nails and hidden hands disappear, as if by magic. Now, the brand is one of three Australian lines about to be acquired by Valeant Pharmaceuticals International. The multinational pharmaceutical/cosmetics company has announced an agreement to acquire Private Formula International Holdings Pty Limited, a leading skin care company. Through its acquisition of Private Formula International, Valeant is acquiring global rights to Dr. LeWinn’s brands, a premium skin care line, Hissyfit, a newly launched anti-aging skin care line, and Revitanail (Renunail in the U.S. and UK), a line of nail strengtheners. Dr. LeWinn’s is distributed throughout Australia in over 2,500 pharmacies, as well as through major department stores, and has current annualized sales of approximately $27 million.

Under the terms of the purchase agreement, at closing, Valeant will pay approximately $69 million and will issue 162,500 shares of Valeant common stock. These shares will be placed in escrow for four years and be subject to indemnity claims from Valeant. The transaction, which is subject to customary closing conditions, is projected to close in early October and is expected to be accretive to Valeant in 2010.

“We look forward to adding Dr. LeWinn’s prestigious line of skin care products to Valeant’s growing dermatology portfolio,” stated J. Michael Pearson, chairman and chief executive officer. “This acquisition will allow Valeant Australia to become a leading dermatology company in Australia with brands that are complementary to our current portfolio and will dramatically increase our presence in the pharmacy over-the-counter (OTC) channel. We believe that Dr. LeWinn’s strong brand recognition and wide distribution network will provide us with a solid platform for continued growth in Australasia.”