Zeltiq’s FDA-approved CoolSculpting system uses a cooling mechanism to reduce the appearance of fat which has not responded to diet or exercise, without disturbing surrounding tissue.
According to the deal, Allergan agreed to pay $56.50 per Zeltiq share – a 14.4% premium compared to the company’s Friday close.
Chief executive officer Brent Saunders has been eager to land a deal since its $160 billion merger with Pfizer collapsed last year.
Saunders has previously said the company will continue to look for deals and it expects that its injection Kybella, which is used to diminish fat under the chin, will do well in 2017.
“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,” Saunders said in prepared remarks. “With CoolSculpting, our offerings to plastic surgeons, dermatologists and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their practices, putting Allergan in a unique position to provide expanded customer service, and help meet the needs of patients.”
Allergan said the deal with Zeltiq is expected to close the 2nd half of 2017.
“Allergan’s world-class medical aesthetics products, global footprint, history and commitment to developing best-in-class aesthetic treatments makes the Company ideally suited to realize the maximum commercial potential of the Zeltiq controlled-cooling technology platform,” chief executive officer Mark Foley added. “I appreciate the unwavering commitment and dedication of the Zeltiq team in building a world-class Company and technology platform with CoolSculpting. We look forward to working with Allergan to ensure successful completion of this transaction, and supporting the ongoing success of the CoolSculpting technology in the U.S. and around the world.”
ZLTQ shares were trading at $55.72 per share in mid-morning activity, up +12.8%.
Material from Reuters was used in this report.