Allergan to buy body-contouring product maker Zeltiq Aesthetics for $2.48 bn

Dublin-based Botox maker Allergan Plc yesterday struck a deal to buy body-contouring product maker Zeltiq Aesthetics Inc for about $2.48 billion, in order to expand its aesthetic product portfolio.

Under the terms of the deal, Allergan will pay $56.50 per share, a premium of 14.4 per cent to Zeltiq's Friday close.

Allergen said that the proposed acquisition enhances its global medical aesthetics portfolio through the addition of Zeltiq's flagship CoolSculpting System, the sales leader in the fast-growing $4 billion body contouring market.

Founded in 2005 by Mitch Levinson as Juniper Medical Systems, California-based Zeltiq has developed the CoolSculpting cryolipolysis procedure.

The company holds the largest market share for non-invasive fat reduction procedures. Its sole product, CoolSCulpting, is the only cryolipolysis device available in the market.

The US Food and Drug Administration approved CoolSculpting System, which works by gently cooling targeted fat cells in the body to induce a natural, controlled elimination of fat cells without affecting surrounding tissue.

Allergen said that millions of treatments have been performed by more than 5,700 CoolSculpting systems in over 80 countries and market research indicates that around 95 per cent of customers are satisfied with the CoolSculpting procedure.

"The acquisition of ZELTIQ is highly complementary and strategic to Allergan. By adding the best-in-class body contouring CoolSculpting System to our best-in-class facial aesthetics, plastic surgery and regenerative medicine offerings we are creating a world-class aesthetics business," said Brent Saunders, chairman and CEO of Allergan.

Founded about 60 years ago, the Dublin-based Allergan is a global specialty pharmaceutical company whose product range includes the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology and anti-infective therapeutic categories.

Medical aesthetic product sales accounted for 28 per cent of Allergan's net revenue in the last quarter ended 31 December.

Allergan, which spends about 17 per cent or about $1 billion a year of its revenue on research and development of new drugs, has 15,000 employees and 30 manufacturing and distribution facilities around the world, including in China, India, Indonesia and Singapore.