The saga of Raleigh-born Salix Pharmaceuticals – launched in 1989 – came to a close, at least as a stand-alone company, Wednesday with the formal closing of the $11 billion acquisition that makes Salix part of Canada-based Valeant Pharmaceuticals.
Salix, the headquarters of which is located in North Raleigh, will operate as a subsidiary of Valeant.
Job cuts are possible. Company executives cited cost savings as a possible benefit of the acquisition when the deal was announced.
With an offer of $173 per share, Valeant prevailed as of March 16 over Endo Pharmaceutical to win control of Salix, which focuses on gastrointestinal drugs.
The deal means millions and millions of “golden parachute” payouts for some Salix top executives – and former ones.
WRAL TechWire has covered Salix since the launch of our website in early 2002. Check out a couple of the earliest mentions listed with this post.
Here is how Valeant announced the close early Wednesday:
Valeant Pharmaceuticals International, Inc. Completes Acquisition Of Salix Pharmaceuticals
LAVAL, Quebec, April 1, 2015 /PRNewswire/ — Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) today announced it has completed the previously announced acquisition of Salix Pharmaceuticals, Ltd. Salix Pharmaceuticals is a specialty pharmaceutical company that offers innovative gastroenterology treatments such as XIFAXAN® (rifaximin) 550 mg, RUCONEST® (C1 esterase inhibitor [recombinant]), APRISO® (mesalamine), UCERIS® (budesonide) extended release tablets and RELISTOR® (methylnaltrexone bromide).
That announcement came after earlier news in which Valeant said some 89 percent of Salix shares were either acquired or were committed to being sold to Valeant.
The notice reads:
“Valeant Pharma (NYSE: VRX) announced the expiration of the tender offer (the “Offer”) by a subsidiary of Valeant Pharmaceuticals International (“VPI”) to purchase all of the outstanding shares of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) (“Salix”) for a price of $173.00 per share in cash, without interest, less any applicable withholding taxes. The Offer expired at midnight, Eastern time, on April 1, 2015. Valeant expects to complete today the acquisition of Salix through a merger without a vote of the Salix stockholders pursuant to Section 251(h) of the Delaware General Corporation Law.
“Computershare Trust Company, N.A., the depositary for the tender offer, has advised that, as of the expiration of the Offer, a total of 48,385,169 shares had been tendered into and not validly withdrawn from the Offer, representing approximately 75.25% of Salix’s outstanding shares and a sufficient number of shares such that the minimum tender condition to the Offer was satisfied. Additionally, the depositary has advised that an additional 8,087,609 shares had been tendered by notice of guaranteed delivery, representing approximately 12.58% of Salix’s outstanding shares. Accordingly, all shares that were validly tendered and not properly withdrawn were accepted for payment and Valeant will promptly pay for all such tendered shares in accordance with the terms of the Offer.”
