Valeant Pharmaceuticals International Inc. (NYSE: VRX, TSX, VRX) has come back with a $418 million offer for Obagi Medical Products Inc. (Nasdaq: OMPI), topping Merz Pharma Group’s $380 million offer on April 2.
Obagi’s board of directors unanimously approved Valeant’s amended offer. The deal comes with a $21 million termination fee.
Valeant made its first offer for the skin product company on March 20 for $19.75 per share, or about $360 million.
On April 2, Merz made its offer, for $22 per share, which would have resulted in a deal worth just more than $380 million. Merz, which researches and develops drugs and medical products for neurological and clinical dermatology, said it was in discussions with Obagi regarding a potential merger when the Valeant deal was first announced, and that it was not aware Obagi was considering a deal with Valeant.
Obagi develops skin-health products, including Obagi Nu-Derm, Condition & Enhance, Obagi-C-Rx, Elastiderm and Clenziderm for aesthetic and therapeutic purposes.
Morgan Stanley is Obagi’s financial adviser, while Jenner & Block LLP is providing the company with legal advice. Deutsche Bank is Merz’s financial adviser and Weil Gotshal & Manges LLP is the company’s legal counsel. Skadden Arps Slate Meagher & Flom LLP is Valeant’s legal counsel for the deal.