Valeant Pharmaceuticals International, Inc. has entered into a definitive agreement to acquire all of the outstanding common stock of Obagi Medical Products, Inc. for $19.75 per share in cash, which represents a 28% premium to Obagi’s closing share price on March 19, 2013, the last trading day prior to announcement.  The transaction is expected to close in the first half of this year and Valeant expects the transaction, once completed, to be immediately accretive to Valeant’s cash earnings per share. The combination is expected to yield cost synergies at an annual run rate of at least $40 million within six months of closing.

Obagi is a leader in topical aesthetic and therapeutic skin-health systems with a product portfolio that includes dermatology brands Obagi Nu-Derm, Condition & Enhance, Obagi-C Rx, ELASTIDerm and CLENZIDerm. Obagi had total revenue of approximately $120 million in 2012.