Valeant Pharmaceuticals International has entered into an agreement to sell Obagi Medical Products for $190 million to a Hong Kong-based fund – almost half the amount it paid for the skincare company three years ago.
Announcing Valeant’s decision to sell Obagi, chairman and CEO Joseph Papa said the sale was part of the company’s effort “to streamline our operations and reduce debt”.
“As we continue to transform Valeant, we will remain focused on the core businesses that will drive high value for our shareholders.”
The company, which bought Obagi for about US$344 million in 2013, is selling the skincare business to Haitong International Zhonghua Finance Acquisition Fund.
The Fund’s key partners include China Regenerative Medicine International which is engaged “in the research, development and commercialisation of innovative bio-medical, healthcare products and medical techniques”.
California-based Obagi was founded “by leading skin care experts” in 1988. Today it’s skincare products, which “are designed to help minimise the appearance of premature skin aging, skin damage, hyperpigmentation, acne and sun damage” are primarily sold through dermatologists, plastic surgeons, medical spas and beauty salons.