Valeant Pharmaceuticals International Inc.’s $8.7 billion deal for Bausch & Lomb Holdings Inc., the eye-care company owned by Warburg Pincus LLC, positions Canada’s largest drugmaker to compete globally in the growing, specialized ophthalmology market.

The deal’s value includes $4.2 billion that Valeant will use to pay off Bausch & Lomb debt, the companies said in a statement. Bausch & Lomb, bought by Warburg in a 2007 leveraged buyout, filed in March for an initial public offering after an earlier effort to sell itself for at least $10 billion stalled, people familiar with the matter said at the time.

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