Eye-care company Bausch & Lomb Inc. is nearing a deal to sell itself to Canadian drugmaker Valeant Pharmaceuticals International Inc. (VRX, VRX.TO) for about $9 billion, the Wall Street Journal reported Friday, citing people familiar with the matter.
According to the Journal, a deal could be struck next week, the people said, cautioning that the deal is not done yet and could still fall apart.
Bausch & Lomb is currently owned by private-equity firm Warburg Pincus LLC, which acquired the eye-care products maker in a leverage buyout in 2007 for about $4.5 billion, including about $830 million of debt.
Bausch & Lomb, based in Rochester, New York, is one of the world's largest suppliers of eye-care products, including contact lenses, lens care products, medicines and implants for eye diseases.
In March, Bausch & Lomb filed for an initial public offering of its common stock with the U.S. Securities and Exchange Commission, while Warburg Pincus continued to explore a private sale of the company.
Valeant, on the other hand, unsuccessfully tried earlier this year to buy integrated specialty pharmaceutical company Actavis, Inc. (ACT), which struck a deal earlier this week to buy Warner Chilcott Plc. (WCRX) for $8.5 billion in stock.
Valeant shares are currently trading at $83.72, up $9.05 or 12.12%. On the TSX, the company's shares are currently trading at C$86.08, up C$9.24 or 12.02%.
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