Allergan to buy Kythera Biopharmaceuticals in $2.1 billion deal

Allergan PLC
announced an deal to buy Kythera Biopharmaceuticals Inc.
in a cash and stock deal valued at $2.1 billion. The deal values Kythera shares at $75 each, or a 23.5% premium to Tuesday’s closing price of $60.72. Kythera’s stock is currently halted for news dissemination. The acquisition, which will consist of 80% cash and 20% stock, is expected to close in the third quarter of 2015. Allergan affirmed its 2015 earnings outlook, and said the deal would be breakeven in 2016 and add to earnings thereafter. “The acquisition of Kythera is a strategic investment that strengthens our leading global position in aesthetics and continues to position us for long-term growth,” said Allergan Chief Executive Brent Saunders. Allergan’s stock is still inactive ahead of the open. It has climbed 16% year to date — Kythera’s stock has run up 75% — while the S&P 500 has tacked on 1.8%.

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